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Future Fund LLC Managing Partner Gary Black Defend his company Tesla company (Nasdaq:TSLA) investment strategy amid criticism from Tesla bulls, focusing on a disciplined approach to position management Instead of short term trading.
What happened: Black revealed that his fund’s average buying price of Tesla shares since early 2023 was $162, while its average selling price was $252. The revelation came as the Future Fund recently trimmed its Tesla position at $351, following a 150% rally from April lows.
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“This is what professional investors do — buy low, sell high,” Black said on X, addressing criticism from Tesla enthusiasts. “No one has ever gone bankrupt by taking profits.”
The Future Fund began reducing its position in Tesla in the fourth quarter of 2022 when it represented 12.2% of the portfolio, following Tesla’s 20% reductions in electric vehicle prices.
The position now stands at 4.11% as of November 15, making Tesla… Fifth largest holding in Active Future Fund ETF (New York Stock Exchange:FFND), behind Nvidia company (Nasdaq:NVDA), Alphabet company (Nasdaq:Google), Salesforce Company (New York Stock Exchange:Customer relationship management), and Netflix company (Nasdaq:NFLX).
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Why does it matter?: Black noted that Tesla’s earnings estimates have dropped 59% since the price cuts, noting that competitors have matched the cuts, resulting in minimal volume growth. Despite the recent rally, Tesla stock has underperformed the NASDAQ 100 by 32 percentage points over the past three years.
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