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.”
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