Stanphyl Capital Up 17% YTD Piles On Tesla Motors (TSLA) Short ThesisVW Staff
Stanphyl Capital June letter on Tesla Motors Inc. (NASDAQ:TSLA) short
For June 2016 the fund was up approximately 1.4% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 0.3% while the Russell 2000 was up approximately 0.1%. Year to date the fund is up approximately 16.6% net while the S&P 500 is up approximately 3.8% and the Russell 2000 is up approximately 2.2%. Since inception on June 1, 2011 the fund is up approximately 102.1% net while the S&P 500 is up approximately 74.0% and the Russell 2000 is up approximately 45.9%. (The S&P and Russell performances are based on their “Total Returns” indices which include reinvested dividends.)
Tesla Motors – short
In addition to our SPY short we remain short what I believe is the market’s biggest single-company stock bubble, Tesla Motors Inc. (ticker: TSLA; June close: $212.28),, which really jumped the shark in June when it announced (pending shareholder approval) a “bailout buyout” of Elon Musk’s other cash-burning,bankruptcy-bound company, Solar City (ticker: SCTY). Rather than laying out here the absurdity of this proposed transaction, I urge you to read through the fantastic articles about it on Seeking Alpha (not the ones written by the financial illiterates who own the stock, but the work of those who have actually done the math), or for a quicker take you can check the WSJ’s excellent “Heard on the Street” column. Even if the hype-hunting,intellectually lazy, Musk Kool-Aid drinking mutual funds that are long TSLA veto the deal, the credibility gap created by the self-serving obviousness of Musk’s proposal may finally pull those guys off the golf course (or at least delay their tee times) long enough to dump the stock.