Gary Black, the Managing Partner of The Future Fund LLC, took to social media platform X to share his investment insights, revealing a surprising truth about his portfolio performance since January 2022. While his fund boasts impressive year-to-date returns of 16.84%, Tesla Inc (TSLA) has been a major weight on his returns, causing a significant drag on his overall performance.
Black highlighted that Tesla has been his largest negative contributor, declining by 34% during this period, in stark contrast to the Nasdaq-100 Index, which saw a 23% increase. To illustrate the stark contrast in performance, he pointed out that Tesla’s stock price has dropped from $342.32 on January 1, 2022, to $260.48 currently. Meanwhile, the Nasdaq-100 has climbed from 15,592 points to 20,232.87.
Despite the underperformance of Tesla, Black remains bullish on the company, jokingly referring to his position as “We’re long $TSLA moron.” This comment was prompted by a user on X who suggested that critics of Tesla should reconsider their positions, implying that they should apologize to Tesla supporters, particularly AleXandra Merz, known as TeslaBoomerMama, a vocal advocate for the company and its CEO, Elon Musk.
While Tesla has been a negative contributor, Black’s The Future Fund Active ETF (FFND) has seen impressive performance driven by other key holdings. NVIDIA Corp (NVDA), the fund’s top holding at 8.46%, has surged by 191.49% this year. Other top performers include Alphabet Inc. Class A (GOOGL) at 8.00%, with a gain of 17.77%, Eli Lilly and Co (LLY) at 50.51%, Salesforce Inc (CRM) at 11.96%, and Netflix Inc (NFLX) at 61.06%. Tesla constitutes only 4.10% of the ETF’s assets.
Beyond the top holdings, other notable contributors to the fund’s strong performance include Advanced Micro Devices, Inc. (AMD) with a 10.72% return, Uber Technologies Inc (UBER) with a 34.26% gain, Palo Alto Networks Inc (PANW) at 26.19%, and DoorDash Inc (DASH) at 58.81%.
Black’s comments about Tesla highlight the volatility of the stock market and the importance of diversification in investment portfolios. Despite his concerns about Tesla, Black remains optimistic about the company’s long-term prospects.
The Future Fund’s success is a testament to Black’s investment acumen and his ability to identify and invest in high-growth companies, despite the challenges posed by the ongoing macroeconomic environment.