Elon Musk has made about $60bn as shares in Tesla have rocketed. However, the second-biggest winner is a relatively obscure Edinburgh firm that began snapping up shares in the electric car company in 2012. It has made an extraordinary $17bn (£12.8bn) from the stock. Despite a major setback in Tesla’s share price this week, Baillie Gifford, the firm behind the purchases, says it remains a “strong supporter” of the car company. It runs a century-old investment trust, Scottish Mortgage, plus some other investment funds. Investment trusts are often regarded as slightly old-fashioned, conventional vehicles for cautious investors. However, eight years ago the fund managers James Anderson and Tom Slater began investing heavily in Tesla, when the shares were changing hands at about $6 each. This week they were trading at about $350, although significantly down from their peak of $498 in late August. As it built up its investment, Baillie Gifford became the largest external shareholder in Tesla, owning about 5% of the company. More recently, it has had to sell some of its holdings – like other investment funds it has concentration limits, to make sure that no one company becomes too large within the portfolio. By 2 September… Read full this story
Electrifying returns: Scottish firm makes £12.8bn investing in Tesla have 206 words, post on www.theguardian.com at September 11, 2020. This is cached page on Europe Breaking News. If you want remove this page, please contact us.