Investment management company Bireme Capital recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 34.7% net of fees compared to a 7.6% return for the S&P 500. The strategy has compounded at 27.4% annualized, besting the market by 16% a year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Bireme Capital highlighted stocks like Tesla, Inc. (NASDAQ:TSLA) in the fourth quarter 2022 investor letter. Headquartered in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle and energy generation and storage systems manufacturer. On February 17, 2023, Tesla, Inc. (NASDAQ:TSLA) stock closed at $208.31 per share. One-month return of Tesla, Inc. (NASDAQ:TSLA) was 44.91%, and its shares lost 27.08% of their value over the last 52 weeks. Tesla, Inc. (NASDAQ:TSLA) has a market capitalization of $659.114 billion.
Bireme Capital made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) shares were down 48% in the quarter, as Musk was forced to sell shares to finance his other adventures and investors seemed to question the strategy of running four firms at once. Admittedly, Tesla is still growing furiously, with revenues up 55% in Q3 over last year and EBITDA margins a healthy 23%. But we continue to question whether that level of margin is sustainable over the long term, as the competition in EVs heats up and Tesla continues moving out of luxury price points to meet their volume goals.
Tesla’s hyper growth phase may also be ending. Wait times for Tesla’s cars are just a few days now, down from multiple months last year. That is a bad sign for growth at the $350b market cap automaker.”
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 Worm Capital’s views on the company. 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.