1. Tesla, Inc. (NASDAQ:TSLA)
Percentage of ARK Investment Management’s 13F Portfolio: 7.36%
ARK Investment Management’s Stake Value: $3,064,923,000
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) has the highest weightage in Cathie Wood’s portfolio as of the end of Q3 2021, accounting for 7.36% of ARK Investment Management’s total holdings. ARK Invest sold 87,756 shares of the EV stock for $90.5 million on January 14, extending its months-long profit booking spree. Known as a Tesla, Inc. (NASDAQ:TSLA) bull, Cathie Wood stated in September that she would sell the electric-vehicle maker’s stock if it reaches her five-year target of $3,000 by the end of 2022.
Tesla, Inc. (NASDAQ:TSLA) has the most productive auto factory in North America, which generated an average of 8,550 cars per week in its California plant last year, according to Bloomberg data. As a result, more investors expressed optimistic views on Tesla, Inc. (NASDAQ:TSLA). In January, Jefferies maintained its Buy rating on the EV stock while Piper Sandler kept its Overweight rating on the auto stock.
At the end of the third quarter of 2021, 60 hedge funds in Insider Monkey’s database held stakes in Tesla, Inc. (NASDAQ:TSLA) worth $10.6 billion, the same as the previous quarter with a stake of $9.3 billion.
In its Q4 2021 investor letter, investment management firm East 72 mentioned Tesla, Inc. (NASDAQ:TSLA) and discussed its stance on the firm. Here is what the fund said:
“However, our favourite short play of 2021, which added value in the past quarter (falling over 14%) was in the US ETF, ARK Innovation Fund (ARKK). ARKK is managed by ARK Investment Management (ARKIM) founded in 2014 by Cathie Wood, its (now) 66year old devout Christian portfolio manager. ARKIM focuses on investing in what it believes are the beneficiaries of disruption and innovation with a focus on AI, DNA sequencing, robotics, energy storage, and blockchain technology3. ARKIM’s viewpoints are interesting but in my opinion, potentially have a habit of falling foul of Bill Gates’ famous comment that “we always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten”. Moreover, this opinion is buttressed by ARKIM’s publication of various financial models to provide a backdrop for their extravagant Tesla valuations, which lack any kind of accounting credibility….ARKK’s biggest investment over this period has been Tesla, averaging around 10% of the fund. ARKK has been forced to sell Tesla shares, despite having a price target of US$3,000/share, mainly because TSLA has appreciated by around 40% since the fund peak in mid-February 2021; the residual 90% of the portfolio is cumulatively down around 44% since 18 February 2021 (see some examples on attaching table). Whatever our view of TSLA, it has been a shining beacon in a sea of detritus for ARKK.”
You can also take a peek at the 10 High Yield Dividend Kings for 2022 and Leon Cooperman’s Performance in 2021: 10 Best Stock Picks.
