Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[FS_FRA]

Were those the largest in its portfolio? I ask because those are minuscule amounts. $661MM is 0.17% of the fund's size, so less than peanuts.
Refining this somewhat, I strongly suspect the equity portion of such a pension fund's assets is itself a fairly small fraction of the $390B. But in the unlikely event that it were only ten percent of the total, that still makes the Total position 1.7% - not much at all.

I smell a significant amount of corporate virtue signalling…..

 

[st_lopes]

But she could at least spread out the selling a bit more, or time it better. Selling almost 270,000 shares, worth over $200 million, is bound to negatively impact the stock and reinforce a drop. Why not sell into strength on a green day or, better, several green days?

That doesn't even touch on the question why she would sell with the likely stellar Q3 P&D and financial results just around the corner. She has room to let TSLA temporarily reach (much) more than 10% share of the funds.

They have 50 other positions with conviction that they want to rebalance in to.

This has been said multiple times, ARK is an actively managed ETF with specific rules and frameworks that they choose/are required to respect. Reading ANYTHING in to the timing of buys and sells is a waste of energy, and frankly, it’s exhausting that we even bother posting about it. It’s not any kind of signal on Tesla.

End of the day, unless Tesla has another 2020 ARKK needs its other positions to perform well and to be well positioned when those positions do perform.

They remain one of the highest conviction and highest PT bulls. Let them run their business.

 

[st_lopes]

I smell a significant amount of corporate virtue signalling…..

Only about 50% of the fund is invested in direct equities. They also have a number of real estate and infrastructure investments that they may be liquidating for similar reasons. Not to mention their fixed income portfolio likely also has a tranche of corporate bonds that may need cleaning up as well.

I’d love to see them but Tesla or any EV or battery player. I’d sleep better at night knowing that the government pension of every Quebecer (myself included) would be allocating capital to these sectors.

Total Portfolio | CDPQ

Our total portfolio includes high-quality assets of all classes to create long-term value, irrespective of market volatility.

www.cdpq.com

 

[Artful Dodger]

Max-pain up again this morning, now at $775. Right now, the playing field looks to be between there and $800, where we see the last of the "Put walls" for Fri, Oct 1st Options expiries:

GLTA.

Cheers!

 

[Artful Dodger]

As far as I can tell, Cathy sells when the rules of ARK** make her sell.

ARK Invest rules don't require them to sell; their rule is they can't buy if an individual equity is over 10% of any of their ETF's holdings.

 

[phantasms]

ARK Invest rules don't require them to sell; their rule is they can't buy if an individual equity is over 10% of any of their ETF's holdings.

Your phone is ringing. CNBC is looking for an interview.

 

[2daMoon]

A comprehensive video on competition and how they are affected by battery supply, from Tesla Economist

 

[Right_Said_Fred]

They have 50 other positions with conviction that they want to rebalance in to.

This has been said multiple times, ARK is an actively managed ETF with specific rules and frameworks that they choose/are required to respect. Reading ANYTHING in to the timing of buys and sells is a waste of energy, and frankly, it’s exhausting that we even bother posting about it. It’s not any kind of signal on Tesla.

End of the day, unless Tesla has another 2020 ARKK needs its other positions to perform well and to be well positioned when those positions do perform.

They remain one of the highest conviction and highest PT bulls. Let them run their business.

I understand what you’re saying: ARK has rules on rebalancing (although they changed those rules to give themselves more room, up to 30% for a single stock, room they have yet to use). And the FUD should not be their concern, it will always be there.

But my main issue is the way they rebalance. On a day with a volume of 28 million shares, most of which are algos and day traders that open and close positions on the same day, the sale of 270,000 shares will have a big impact on the SP. For all we know ARK could have been the cause of the big drops in the morning and afternoon. The responsible way of rebalancing is spreading large sales over numerous days, especially when you are one of the most vocal Tesla bulls.

 

[Singuy]

100% agree.

I mean Mama Cathie could have just HODL every share she bought and ARKK would be 90% TSLA right now.

That defeats the purpose of a diversified and managed ETF.

She has her own holdings and is personally worth over a billion dollars. Mama Cathie has a LOT of TSLA.

I agree with accident. Cathies fund focus on hyper growth stocks and her stupid rules prevent them from realizing any 5-10x run ups when they are high risk names. Ron Barron's fund has the right idea. Yeah it becomes 60% Tesla but that's the point.

 

[Discoducky]

Giga Texas hiring spree as well as Boring Co which is developing properties in both Pflugerville and Bastrop.

https://www.kvue.com/mobile/article/money/economy/boomtown-2040/tesla-hiring-gigafactory-austin-texas

 

[The Accountant]

You mean like this?

 

[Krugerrand]

I understand what you’re saying: ARK has rules on rebalancing (although they changed those rules to give themselves more room, up to 30% for a single stock, room they yet have to use). And the FUD should not be their concern, it will always be there.

But my main issue is the way they rebalance. On a day with a volume of 28 million shares, most of which are algos and day traders that open and close positions on the same day, the sale of 270,000 shares will have a big impact on the SP. For all we know ARK could have been the cause of the big drops in the morning and afternoon. The responsible way of rebalancing is spreading large sales over numerous days, especially when you are of the most vocal Tesla bulls.

It’s not personal, so don’t make it so. Neither she nor her fund are in TSLA for your benefit or mine, but that of themselves.

It’s every human for themselves. Once you accept that, you won’t care what she or her fund does. Cathy and her fund are just another entity trying to make money off the backs of the people doing all the hard work. She just happened to pick the same group of people as you and me.

 

[MP3Mike]

I agree with accident. Cathies fund focus on hyper growth stocks and her stupid rules prevent them from realizing any 5-10x run ups when they are high risk names. Ron Barron's fund has the right idea. Yeah it becomes 60% Tesla but that's the point.

You do realize that the Baron funds sold a lot of TSLA and they are only ~39% TSLA now right?

 

[Artful Dodger]

@Discoducky , 404 code. Your link won't work.

Tesla hiring for over 300 opens positions in Austin | kvue.com https://www.kvue.com › economy › boomtown-2040

2 days ago — Tesla had 315 jobs posted on its website on Monday, Sept. 27 for its Gigafactory.​

HTH.

 

[Singuy]

You do realize that the Baron funds sold a lot of TSLA and they are only ~39% TSLA now right?

Yeah they did and thats fine. They don't see it doubling anytime soon after it's monstrous run. But the point is they let it run its course.

 

[CHGolferJim]

You do realize that the Baron funds sold a lot of TSLA and they are only ~39% TSLA now right?

They reallocated 5% from TSLA to SpaceX, total remains almost the same.

Baron Partners Institutional (BPTIX) Holdings - Yahoo Finance

View Top Holdings and Key Holding Information for Baron Partners Institutional (BPTIX).

finance.yahoo.com

 

[MP3Mike]

They reallocated 5% from TSLA to SpaceX, total remains almost the same.

No, they only hold ~4.2% SpaceX and they already had that before they sold TSLA when it was ~60% of the fund.

And even if they had, how would selling ~20% of your fund to by 5% of something else make the total remain almost the same?

 

[st_lopes]

I understand what you’re saying: ARK has rules on rebalancing (although they changed those rules to give themselves more room, up to 30% for a single stock, room they have yet to use). And the FUD should not be their concern, it will always be there.

But my main issue is the way they rebalance. On a day with a volume of 28 million shares, most of which are algos and day traders that open and close positions on the same day, the sale of 270,000 shares will have a big impact on the SP. For all we know ARK could have been the cause of the big drops in the morning and afternoon. The responsible way of rebalancing is spreading large sales over numerous days, especially when you are one of the most vocal Tesla bulls.

And miss out on the "fire sale" of other positions?

I used to swing trade as well, under similar rules, 10 equally weighted positions. I would rebalance weekly. Which also meant that on large draw downs, my least down position would still be sold to buy my more down positions.

Their job is not to care about the impact of their trades on SP of the underlying, it's to rebalance their portfolio. Even with their sells, TSLA has outperformed other portfolio positions and macros over this correction period. So, kind of moot.

 

[canoemore]

At CanoemoreFunds our rule is to sell TSLA only when it exceeds 125% of our total portfolio value.

 

[UncaNed]

At CanoemoreFunds our rule is to sell TSLA only when it exceeds 125% of our total portfolio value.

Same here at Uncaned investments LLC.