How one investment fund hit the jackpot – thanks to Tesla

Scottish Mortgage Investment Trust’s Tesla shares have increased in value by more than $2 billion as the electric carmaker’s stock price has surged.

Published on:

20 Aug 2020, 9:58 am

In a recent podcast, BizNews founder Alec Hogg reflected on the volatility of Tesla stocks. Talking about the BizNews Share portfolio, he said: "Although we had a nice little run with Tesla, the volatility in the stock was just too much for me and we sold at $300 and it's now $1,500. If you had more of a risk appetite, you could be very happy with where Tesla is today." A British fund that has grown more than seven times faster than its peers is one of those happy investors. Scottish Mortgage Investment Trust's holding of 1.87 million shares in Tesla has increased in value by more than $2 billion since the end of March as the South African-born Elon Musk's company's stock price has surged to a record. That, along with investments, means the Scottish fund has provided a year-to-date return of 55% versus 7.1% for its peer group, according to data compiled by Bloomberg. They did, however, cut their stake in Tesla by about 125,000 shares in the first quarter. They must be regretting that now! – Renee Moodie