Boyar Value Group, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The Boyar Value Group seeks long-term capital appreciation, which it pursues by investing primarily in equity securities of companies that are believed by the Fund’s investment adviser to be intrinsically undervalued. In the fund’s view, one of the dangers to sustained recovery is cash hoarding, considering that the U.S. economy is largely consumer-driven. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Boyar Value Group, 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:
“In October, roughly 140 countries agreed to one of the largest overhauls of global tax rules in a century, targeting a minimum 15% tax rate. In late October, Tesla’s market value surpassed $1 trillion after reports that Hertz had ordered 100,000 vehicles. (As of 12/31/19, Tesla’s market value had been “only” $75 billion.)
Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms Inc. (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017). But Elon Musk, in selling shares for the first time since 2016, is leading the pack, having sold ~$16 billion worth of Tesla stock in 2021. Overall, according to Bloomberg, the very richest Americans unloaded $42.9 billion in stock through the start of December—more than double their figure for 2020.”
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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.
