Ruffer Investment Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. Ruffer has been providing investment management services for institutions, pension funds, charities, financial planners, and private clients, in the UK and internationally since 1994. According to the fund, in investing today, there is no time for exuberance – it is a time to keep safe. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ruffer Investment Management, in its Q4 2021 investor letter, mentioned Tesla, Inc. (NASDAQ:TSLA) and discussed its stance on the firm. Founded in 2003, Tesla, Inc. (NASDAQ:TSLA) is a Palo Alto, California-based vehicle manufacturing company with a $1.1 trillion market capitalization, and is currently spearheaded by its CEO, Elon Musk. Tesla, Inc. (NASDAQ:TSLA) delivered a 2.52% return since the beginning of the year, while its 12-month returns are up by 70.45%. The stock closed at $1,089.00 per share on March 28, 2022.
Here is what Ruffer Investment Management has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:
“When I was on honeymoon in Venice, I spotted a pair of Chinese dragons, one chewing a toenail, and the other picking its nose. Smart shop, Grand Canal – my wife Jane and I set an upper limit on what we’d pay. We later walked out with the dragons having written a cheque for slightly over four times our upper limit.
That’s the problem with the markets today. How high a rating can a fixed interest security fetch? Ten years ago, the answer might have been a 4% yield. We doubled our money in the government bond known as a war loan, selling it triumphantly at 80. It was redeemed sometime later at 100. Today, it would be trading at around 705 if it still traded as an irredeemable. How about Tesla (NASDAQ:TSLA) – a great story, going to the moon – is $600 about right? If yes, then you missed the latest double.
Look down the other end of the telescope – how much debt is too much debt? There has been a relentless rise in levels over the past 50 years. As yields have pushed higher, they have done so to a chorus of ‘they have now reached an unsustainable level’. In the first division currencies, this constant cry has always been wrong, but the crickets on the hearth are still chanting, ’emergency, emergency’.”
Our calculations show that Tesla, Inc. (NASDAQ:TSLA) ranks 26th on our list of the 30 Most Popular Stocks Among Hedge Funds. Tesla, Inc. (NASDAQ:TSLA) was in 91 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 60 funds in the previous quarter. Tesla, Inc. (NASDAQ:TSLA) delivered a -0.46% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Tesla, Inc. (NASDAQ:TSLA) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
