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Tesla (TSLA) Has Risen 823% in Last One Year, Outperforms Market

Alex Smith
·3 mins read

If you are looking for the best ideas for your portfolio you may want to consider some of Artko Capital's top stock picks. Artko Capital, an investment management firm, is bearish on Tesla Inc. (NASDAQ:TSLA) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Tesla Inc. (NASDAQ:TSLA) stock. Tesla Inc. (NASDAQ:TSLA) is an electric car company.

On July 22, 2019, Artko Capital had released its Q2 2019 investor letter. The investment firm said that Tesla Inc. (NASDAQ:TSLA) stock was overvalued and faces significant demand and profitability headwinds. Tesla Inc. (NASDAQ:TSLA) stock has posted a return of 823.0% in the trailing one year period, outperforming the S&P 500 Index which returned 11.4% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Tesla Inc. (NASDAQ:TSLA) stock has risen by 428.1%.

In Q2 2019 investor letter, Artko Capital said the fund posted a return of 15.1% in the second quarter of 2019, outperforming fund's benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Artko Capital about Tesla Inc. (NASDAQ:TSLA) stock in the Q2 2019 investor letter.

"We have continued to successfully deploy small, sub-1% of portfolio capital, amounts into Tesla puts which have, on a trailing twelve-month basis, contributed approximately 3.5% to overall portfolio performance including 2% this past quarter as worries about the company’s demand and liquidity weighed on the stock price during the quarter. We continue to believe that over the long term the highly overvalued and over leveraged auto manufacturer led by an erratic CEO with a public history of fraud will face significant demand and profitability headwinds and with properly sized investments will continue to be a source of profit for our partnership."

Tesla
Tesla

Last week, we published an article revealing why Tesla Inc. (NASDAQ:TSLA) stock crashed earlier this month. The stock fell as it was excluded from the S&P 500 and the completion of its stock sale.

In Q2 2020, the number of bullish hedge fund positions on Tesla Inc. (NASDAQ:TSLA) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Tesla's downside potential. Our calculations showed that Tesla Inc. (NASDAQ:TSLA) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.