How Actively Managed US Funds That Bet Big On Tesla Fared In 2022 – Tesla (NASDAQ:TSLA)

• Tesla Inc TSLA stock witnessed a significant sell-off in 2022, shedding an eye-popping 65%, led by a rout in the financial markets, demand concerns and Elon Musk’s Twitter purchase.
• Interestingly, 50 actively-managed U.S. equity funds have more than 5% of their assets in the stock, surpassing the threshold that many fund managers are shy to cross, a Reuters report said.
• These funds declined by an average of 42.1% in 2022, more than double the average 17% decline among U.S. stock funds, the report said citing Morningstar. 
• The Baron Partners Retail fund, which leads all U.S. mutual funds with about 52% of its assets in Tesla shares, lost close to 43% last year, the report said.
•  The $54 million Zevenbergen Genea Institutional fund, which has 13% of its assets in Tesla, lost nearly 59%, it added.
• Dan Ives, an analyst at Wedbush Securities said the prospect of another year of weak performance may prompt some of Tesla’s biggest bulls to reduce their positions, according to the report.
• “It’s a fork-in-the-road time for many of these institutional investors, and a lot of where it goes from here is dependent on Musk,” he said.
• However, the one person who kept on adding Tesla to their portfolio was Cathie Wood. 
• ARK’s funds have loaded up over 484,000 shares in the last six trading sessions while their cumulative purchases since mid-December stand at over 670,000 shares.

Also Read: Everything You Need To Know About Tesla Stock