Tesla Shorts Suffer As Stock Soars Over 10%, But This Fund Manager Doesn't Regret Missing Out On Rally After Paring Stake: Here's Why
Portfolio Pulse from Shanthi Rexaline
Tesla shares have surged over 10% following the release of Q2 deliveries, causing significant losses for short sellers. Gary Black's Future Fund reduced its Tesla holdings earlier this year, replacing it with Nvidia, which has performed exceptionally well. Despite missing out on Tesla's recent rally, Black remains confident in his decision due to Nvidia's strong performance and Tesla's high valuation.
July 03, 2024 | 12:06 pm
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Future Fund Active ETF reduced its Tesla holdings earlier this year, replacing it with Nvidia. Despite Tesla's recent rally, the fund has benefited from Nvidia's strong performance, which has gained 146% YTD.
Future Fund Active ETF's decision to reduce Tesla holdings and increase Nvidia exposure has paid off, given Nvidia's strong YTD performance. This strategic move has mitigated the impact of missing out on Tesla's recent rally.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Nvidia has replaced Tesla as the second-largest holding in Future Fund's portfolio, with a 146% YTD gain. The AI revolution has significantly benefited Nvidia, making it a strong performer compared to Tesla.
Nvidia's strong YTD performance, driven by the AI revolution, has justified its position as the second-largest holding in Future Fund's portfolio. This has provided a favorable comparison to Tesla's performance.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Tesla shares have surged over 10% following the release of Q2 deliveries, causing significant losses for short sellers. Despite the recent rally, Gary Black of Future Fund remains cautious due to Tesla's high valuation.
Tesla's recent surge is driven by strong Q2 deliveries, which has led to significant losses for short sellers. However, the high valuation and falling earnings estimates make the stock less attractive in the long term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100