Official Statement from Baillie Gifford & Company:
"The substantial increase in Tesla’s share price means that we needed to reduce our holding in order to reflect concentration guidelines which restrict the weight of a single stock in clients' portfolios. However, we intend to remain significant shareholders for many years ahead. We remain very optimistic about the future of the company. Tesla no longer faces any difficulty in raising capital at scale from outside sources but should there be serious setbacks in the share price we would welcome the opportunity to once again increase our shareholding.”
Baillie Gifford & Company is a large investment firm located in Edinburgh, U.K., with almost $324 Billion in assets under management. They’ve also been the largest (besides Elon Musk) Tesla stake-holders for a very long-time, having initiated their position in 2013.
A SEC filing released today revealed that their position was reduced to below 5% due to their internal portfolio concentration guidelines. This means each position within their fund is required to stay beneath a specified percentage of the entire portfolio. A Baillie Gifford report from July of this year revealed their Tesla position made-up 13.4% of their portfolio. Thus they were required to reduce their holdings and reallocate due to Tesla's incredible performance YTD - much like the reduced scale of the Tesla Model 3 I have on my desk and in the picture below.
If you would like to have a Hot Wheels Tesla Model 3 of your own, please click here or on the pictures or links above.
Watch for more Tesla action this month with a potential S&P 500 inclusion, Battery Day, CyberTruck and Roadster updates, and other catalysts.
Disclaimer: This post represents my own opinion and is not a substitute for professional investment advice. It does not represent a solicitation to buy or sell any security. Investors should conduct their own due diligence and consult their tax and financial advisors before making any investment.
Disclosure: I currently hold a position in: TSLA, with the intention of going Long.
I wrote this post myself, and it expresses my own opinions while sometimes quoting others. I am not receiving compensation for it (with the exception of below). I have no business relationship with any company whose stock is mentioned in this article.
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