Vilas Capital Shorting “Massively Overvalued” Tesla Stock; Likes Ford, Honda, More

Vilas Capital re-bought into BP plc (ADR) (NYSE:BP) in the third quarter, as Thompson likes BP’s 7% dividend yield and the fact that it was/is trading close to book value. Given that Thompson expects oil prices to rebound over time, BP’s dividend will likely become safer and the stock will likely trend higher, should the money manager’s prediction pan out. 40 funds that we track owned $1.76 billion worth of BP plc (ADR) (NYSE:BP) shares on June 30, up from 34 funds with $685.46 million in shares on March 31.

Last but not least, John Thompson is bullish on Citigroup Inc (NYSE:C), as the stock ranks as the fund’s largest holding in the financial services sector. Thompson is long because he thinks that Citigroup will trade considerably higher as interest rates normalize and as returns on capital increase. Given that Thompson thinks that his basket of financial services stocks should be worth around 1.5-times book value in normalized conditions, and seeing as Citigroup trades at just 0.68-times book value, Citigroup could have over 100% upside potential under ideal conditions. The number of hedge funds in our system with holdings in Citigroup Inc (NYSE:C) fell by four quarter-over-quarter to 97 at the end of June.

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