U.S. markets open in 9 minutes
  • S&P Futures

    3,851.75
    +42.50 (+1.12%)
     
  • Dow Futures

    31,261.00
    +349.00 (+1.13%)
     
  • Nasdaq Futures

    13,066.50
    +155.50 (+1.20%)
     
  • Russell 2000 Futures

    2,240.10
    +40.90 (+1.86%)
     
  • Crude Oil

    61.71
    +0.21 (+0.34%)
     
  • Gold

    1,736.20
    +7.40 (+0.43%)
     
  • Silver

    26.99
    +0.55 (+2.06%)
     
  • EUR/USD

    1.2055
    -0.0032 (-0.27%)
     
  • 10-Yr Bond

    1.4290
    -0.0310 (-2.12%)
     
  • Vix

    24.85
    -4.04 (-13.98%)
     
  • GBP/USD

    1.3944
    +0.0021 (+0.15%)
     
  • USD/JPY

    106.5900
    +0.0880 (+0.08%)
     
  • BTC-USD

    48,021.04
    +3,251.70 (+7.26%)
     
  • CMC Crypto 200

    964.22
    +31.08 (+3.33%)
     
  • FTSE 100

    6,556.47
    +73.04 (+1.13%)
     
  • Nikkei 225

    29,663.50
    +697.49 (+2.41%)
     

Why Mott Capital Keeps Selling Tesla (TSLA)

  • Oops!
    Something went wrong.
    Please try again later.
Jose Karlo Mari Tottoc
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Mott Capital Management, an investment management firm, published its 'Mott Capital Management Thematic Growth Composite' fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 25.4% was recorded by the fund for the Q4 of 2020, outperforming both its S&P 500 Total Return benchmark that delivered an 18.4% return and its S&P 500 Index that returned a 31% gain. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Mott Capital Management, in their Q4 2020 Investor Letter, said that Tesla, Inc. (NASDAQ: TSLA) was one of their largest contributors during the fourth quarter of 2020. Tesla, Inc. is an electric vehicle and clean energy company that currently has a $779 billion market cap. For the past 3 months, TSLA delivered a decent 97.12% return and settled at $811.66 per share at the closing of February 11th.

Here is what Mott Capital Management has to say about Tesla, Inc. in their Q4 2020 investor letter:

"The significant gains in 2020 were attributable to Tesla, which surged by more than eightfold. It seems hard to believe, but the stock made up 6 years of underperformance and then some all-in-one year. I will be honest, I'm not sure we will have an experience like it again. The stock reached a very high concentration level in the portfolio given the outsized gains, which I was not always comfortable with given the stock's volatility. The run-up in price led to the stock being trimmed back on a few occasions when it reached 20% of the overall portfolio value.

Tesla has surged roughly another 20% in 2021, which has led it to hit 20% of the portfolio value. As a result, I trimmed the position again. It now accounts for about 15% of individual portfolios as of this letter. If it should reach 20% again, I will assess the situation and manage the risk accordingly."

TSLA, backgrounds, car, cebit, decoration, electric, event, exhibition, expo, fame, germany, hall, hannover, horizontal, image, indoors, light, line, people, screen, shape, showing, square, tesla, view, white
TSLA, backgrounds, car, cebit, decoration, electric, event, exhibition, expo, fame, germany, hall, hannover, horizontal, image, indoors, light, line, people, screen, shape, showing, square, tesla, view, white

Copyright: wolandmaster / 123RF Stock Photo

Just recently, we published an article about Billionaire David Siegel's Top 10 Stock Picks, and Tesla, Inc. (NASDAQ: TSLA) is part of it. TSLA delivered a massive 400% return in the past 12 months.

Our calculations show that Tesla, Inc. (NASDAQ: TSLA) is very popular among hedge funds but still wasn't able to make our list of the 30 most popular stocks among hedge funds.

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock that's utilizing artificial intelligence. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

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