Scottish Mortgage posts 31.5% NAV return over six months and exits Tesla

what happened

According to TradingView, Scottish Mortgage Investment Trust (SMT) delivered a 31.5% total return on net asset value in the six months to September. That was well ahead of the 16% gain in the FTSE All-World index. The trust's share price return was 33.8%.

In April the trust sold its remaining Tesla shares, closing out a holding that dated back to 2013. It pointed to valuation concerns and growing competition in electric vehicles, particularly in China.

why it matters

For markets, this is a story about how a major investor judged a long-held position in an automaker. Fully exiting Tesla suggests the fund saw valuation and competitive risks as outweighing its earlier conviction. Other market participants may read it as a signal about growth expectations and competition in EVs.

market impact

Tesla shares: the SMT fund has closed its position, so the direct effect on the stock looks limited

tags

instruments