Future Fund Managing Partner Gary Black has defended the decision to reduce the fund’s stake in Tesla Inc. (NASDAQ:TSLA), citing a shift in investment strategy and the electric vehicle maker’s performance.
What Happened: Black outlined the criteria for Future Fund’s sell discipline, in a post written on X on Wednesday, which includes reaching the price target, a change in the investment thesis, excessively high near-term expectations, or a change in strategy or CEO.
Black noted that the fund had trimmed its TSLA position from 12.2% in September 2022 to 3.6% currently, during which time TSLA stock fell 11% while the Nasdaq 100 rose 64%. He added that TSLA was replaced by NVIDIA Corp (NASDAQ:NVDA) as the fund’s number two position, which contributed positively to its performance.
“We stand by our decision to trim from a 12.2% position (#1) in Sept 2022 to 3.6% today (#6). During that period, -11% vs NDX +64%, and has replaced as our #2 position, which has been additive to our performance,” Black wrote.