Is Tesla Motors Inc (NASDAQ:TSLA) a sound investment right now? Money managers are getting less optimistic. The number of bullish hedge fund positions were cut by 4 lately. Everybody knows that Tesla is one of top short ideas of hedge funds. However, there were still 31 hedge funds with bullish equity or options positions at the end of the third quarter. George Soros and Roberto Mignone, two of the fund managers that we respect a lot, sold out their stakes in the company recently.
We don’t think hedge funds can generate a lot of alpha on the short side of their portfolios. However, we are concerned that there aren’t a lot of hedge funds with bullish TSLA positions. In this article, we’re going to take a look at the key action regarding Tesla Motors Inc (NASDAQ:TSLA).
What have hedge funds been doing with Tesla Motors Inc (NASDAQ:TSLA)?
Heading into Q4, a total of 31 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of -11% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes considerably.
According to hedge fund intelligence website Insider Monkey, David E. Shaw’s quant shop D E Shaw had the largest call position in Tesla Motors Inc (NASDAQ:TSLA), worth close to $487.1 million, amounting to 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Daniel Benton of Andor Capital Management, with a $303.4 million position; the fund has 14.1% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism consist of Ken Griffin’s Citadel Investment Group, John Thaler’s JAT Capital Management and Matthew Hulsizer’s PEAK6 Capital Management.
Since Tesla Motors Inc (NASDAQ:TSLA) has witnessed declining sentiment from the smart money, it’s safe to say that there was a specific group of fund managers that slashed their full holdings last quarter. Intriguingly, Mike Masters sold off the largest position of the “upper crust” of funds followed by Insider Monkey, comprising close to $192 million in stock. Roberto Mignone’s fund also said goodbye to its stock, about $91.2 million worth. Finally George Soros sold his $17 million position in the stock. These transactions are interesting, as total hedge fund interest fell by 4 funds last quarter.