Hedge fund activity in Tesla Motors Inc (NASDAQ:TSLA)
As mentioned, hedge funds may have foreseen Tesla Motors Inc (NASDAQ:TSLA)’s share price slump today. This is because even though the number of hedge funds with long positions in Tesla among those we track went up to 29 by the end of the first quarter, from 25 in the previous quarter, their stake in the electric car maker was considerably lessened. There was a 24.62% quarter-over-quarter decline in total hedge fund holdings in Tesla by March 31 to $1.04 billion, which is less than the 15.13% decline of the company’s stock in the first quarter.
Andor Capital Management, led by Daniel Benton, held the biggest Tesla Motors Inc (NASDAQ:TSLA) position by March 31, owning 1 million shares worth about $188.8 million. Masters Capital Management, helmed by Mike Masters, on the other hand, owned $179.3-million worth of call options underlying 950,000 shares. Balyasny Asset Management, led by Dmitry Balyasny, initiated the largest position in Tesla in the first quarter, buying 420,675 shares. Other funds with brand new Tesla positions are Alexander Mitchell’s Scopus Asset Management and Daniel S. Och’s OZ Management. Meanwhile, Patrick McCormack’s Tiger Consumer Management sold 271,408 shares and Benjamin A. Smith’s Laurion Capital Management sold 85,000 shares. It should be noted, furthermore, that more investors among those tracked by Insider Monkey hold ‘Put’ positions underlying the shares of Tesla, which may be indicative of an overall sentiment that the stock is overvalued.
Due to the significantly lower deliveries guidance, and the fact that hedge funds have reduced their stakes with most of those we follow also holding ‘Put’ positions, we do not recommend going long Tesla Motors Inc (NASDAQ:TSLA) at the moment.