Dave Lee on Investing
Ark Invest Sells Majority of Their Tesla Stock Holding in Past 4 Months - What's going on?
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Dave Lee on Investing
Ark Invest Sells Majority of Their Tesla Stock Holding in Past 4 Months - What's going on?
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Watch this video on what a 10x company is:
My TSLA Exit Plan, https://www.youtube.com/watch?v=r9HtG-jJSTY
Links:
Ark Invest Form 13-F for 9-30-19, https://sec.report/Document/0001104659-19-062387/
Ark Invest Form 13-F for 12-31-19, https://sec.report/Document/0001104659-20-009071/
ARKK Holdings 2-7-20, https://drive.google.com/file/d/19V-7JypJ02e4Gq2KWdsf5JAccZsi4PwN/view?usp=sharing
ARKQ Holdings, 2-7-20, https://drive.google.com/file/d/1vll6Sg0FOThFlDHwaJ_onUYtIyO0t7Zf/view?usp=sharing
ARKW Holdings, 2-7-20, https://drive.google.com/file/d/1lGjkm_M5bw93lUk_kQBaQeCUuwODLudC/view?usp=sharing
Ark Invest, https://ark-funds.com
Ark Invest SEC Filings, https://sec.report/CIK/0001697748
Ark Invest $7000 TSLA price target, https://ark-invest.com/research/tesla-price-target
Cathie Wood 10-23-19 Twitter statement, https://twitter.com/ARKInvest/status/1187144704103718912?s=20
Harry Markowitz’s 1952 article on Modern Portfolio Theory, https://www.math.ust.hk/~maykwok/courses/ma362/07F/markowitz_JF.pdf
Article on Modern Portfolio Theory, https://www.guidedchoice.com/video/dr-harry-markowitz-father-of-modern-portfolio-theory/
Ark Invest has a $7000 TSLA price target by end of 2024, yet they’re selling TSLA stock like crazy.
In just over the past 4 months (from Oct 1, 2019 until Feb 7, 2020) they’ve sold off over 2/3 of their TSLA position.
In this video, I want to take a deeper look into this seemingly crazy behavior.
On 9/30/19, Ark Invest held 1,172,610 shares of TSLA. TSLA share price was $240.87
On 12/31/19, Ark Invest held 721,988 shares of TSLA. TSLA share price was $418.33
They sold 38.4% of their TSLA holdings during Q4 of 2019.
They sold 450,622 shares of TSLA during Q4 2019.
First month or so of 2020:
As of 2/7/20 ($747.07):
ARKK - 292,084
ARKQ - 28,922
ARKW - 63,488
384494 shares
So from Jan 1, 2020 until Feb 7, 2020, Ark sold 337494 shares of TSLA. Feb 7 stock price $748.07
Ark Invest sold 46.7% of their TSLA holdings from Jan 1 to Feb 7, 2020.
From Oct 1, 2019 (1.17m shares) to Feb 7, 2020 (385k shares), Ark Invest sold 788,116 shares of TSLA. 67.2% of their TSLA holdings.
I just over 4 months they’ve liquidated over 2/3 of their TSLA position!
You’d think if they believe TSLA really is going to $7000 in 2024, then they wouldn’t be liquidating so much of their TSLA shares
What’s going on?
The key principles at play here are portfolio management and diversification.
Ark Invest says they’re taking profits and simply doing portfolio management.
However, let’s look at Warren Buffett and Charlie Munger’s view on portfolio management theory and diversification for professional investors. This stands in stark contrast to the view and values of Wall Street today.
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Check out my archived articles/posts on Tesla: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768
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Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts