Should You Hold Tesla (TSLA) for the Long-Term?
Alger Capital, an investment management company, released its “Alger Spectra Fund” fourth quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, Class A shares of the fund underperformed the Russell 3000 Growth Index. The portfolio’s largest sector overweight in the quarter was Energy and the largest sector underweight was Information Technology. Energy and Utility sectors were the significant performance contributors, while Information technology and Consumer Discretionary sectors detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Capital highlighted stocks Tesla, Inc. (NASDAQ:TSLA) in the Q4 2022 investor letter. Headquartered in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle and energy generation and storage systems manufacturer. On February 2, 2023, Tesla, Inc. (NASDAQ:TSLA) stock closed at $188.27 per share. One-month return of Tesla, Inc. (NASDAQ:TSLA) was 66.52%, and its shares lost 38.83% of their value over the last 52 weeks. Tesla, Inc. (NASDAQ:TSLA) has a market capitalization of $595.705 billion.
Alger Capital made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:
"Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares underperformed during the quarter as it confronted transportation capacity issues that caused deliveries to fall short of estimates, as well as developing demand softness. Moreover, the demand softness became evident in increased Model 3 and Y discounts, the introduction of supercharging credits, some consumers deferring purchases until the Inflation Reduction Act EV purchase incentives become effective in January 2023, and other consumers who may be influenced by higher financing rates or deterred from initiating a high-ticket purchase. Despite these near-term difficulties, we remain constructive on EV innovation, adoption, and Tesla's growth prospects over the long-term."
Tesla, Inc. (NASDAQ:TSLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter, which was 73 in the previous quarter.
We discussed Tesla, Inc. (NASDAQ:TSLA) in another article and shared the list of hot EV stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.