By
Chimamanda U. Martha
April 16th, 2024
This top fund asset manager took a chance with Tesla (TSLA) stock last year. The chance has obviously already paid off and Tesla still continues to surge.
Since the end of 2019, Tesla Inc. has been in the news because of the company’s performance. Tesla (TSLA) stock has achieved what can only be described as a parabolic stock and is currently impressing all of its investors. Led by Elon Musk, Tesla has come a long way from an underperforming company to what is probably the best-performing company in the market at the moment. While a lot of investors regret not buying Tesla stock before the spike, one top fund manager seems to have seen the surge coming.
Top Fund Swooped In Early on Tesla (TSLA) Stock
Global Growth Companies Fund operated by Hyperion Asset Management Ltd. has performed a lot better than average recently. According to a Bloomberg report, the Australian company has pulled in interesting gains of at least 28% in the last three years. This achievement, on average, is a better performance than about 99% of other funds.
The top fund manager has had its ears to the ground regarding Tesla stock for a while now. In all the time it was pulling in impressive results for its participants, the company watched Tesla closely waiting for the right time to swoop in.
Generally, Tesla’s position and books became a bit more impressive last year. As it slowly began to morph into a promising company, it’s outlook began to change and Hyperion decided that it was time to bite apiece. The decision paid off as Tesla has returned over 91% already in 2020.
Why Did The Hyperion Top Fund Jump on Tesla (TSLA) Stock
Hyperion’s Chief Investment Officer Mark Arnold has said that the move to buy Tesla stock was strategic. According to him, Hyperion believes in any company that is focused on technology and can thrive in an unfavorable environment. For Tesla, its focus on energy and battery technology as well as the electric vehicles was attractive to Hyperion.
According to Arnold, the company is attracted to any firms that look to tackle certain problems. Over the last couple of years, Hyperion has been looking into businesses that look to solve issues. The company has positions in companies that solve digitization and e-commerce problems. The company currently has about $5.24 billion worth of assets under management. Some of its holdings include Amazon, Visa, and Microsoft. The top fund usually holds on to a stock for 10 years.
Innovation Is Key
Arnold has said that Hyperion also prefers innovative businesses. He said:
“If you are not innovative and creative, then you’re going to find it difficult to grow your revenues because the overall economic pie is not going to be going very much.”
This is probably why the company considers a firm’s research and development expenditure before it acquires a stock position. Arnold has said that companies in the US tick this box and most of the fund consists of American firms.