- Tesla stock is volatile, but bullishness for the EV maker has paid off for one money manager, the Wall Street Journal reported.
- The Volt RoboCar Disruption and Tech ETF’s high allocation to Tesla helped it beat most growth-focused ETFs in October.
- Volt Equity founder Ted Park sees a big future in Tesla’s plans for autonomous vehicles.
Many money managers stay away from Tesla’s volatile, high-priced stock, but for the founder of investment firm Volt Equity, being bullish on the electric vehicle maker has translated into market-beating gains so far this year, according to The Wall Street Journal.
The Volt RoboCar Disruption and Tech exchange-traded fund surged by 36% in October, making it one of the best-performing funds in the US, said the WSJ in a report published Tuesday.
The ETF last month easily outperformed the Russell 1000 Growth Index, which gained 8.6% in October. It also did better than the vast majority of funds focused on growth stocks, as just 9% of those beat the Russell 1000 Growth Index last month, marking the lowest monthly hit rate since July 2002, according to the report.
Billed as the first Tesla options ETF “for the robotaxi future,” the fund’s performance was heavily directed by the roughly 40% allocation to Tesla through its stock and long-dated call options.
Tad Park, founder and CEO of Volt Equity, told the newspaper that the Volt RoboCar Disruption and Tech ETF has more exposure to Tesla than any other ETF on the market. The fund trades under the symbol VCAR.
“We really focus on trying to pick winners and concentrate heavily on our conviction,” Park told WSJ. “Not what the P/E ratio was.”
His bullishness on Tesla stock stems from the likelihood the company will be the first to market autonomous cars, he added.
Park’s outperformance last month coincided with a big run for Tesla stock. The company surpassed $1 trillion in valuation as shares surged by more than 20% in the last week of October. The stock this year has gained about 47% but struggled on Tuesday, losing more than 10%.
Park told Insider last month the ETF was designed to track companies that hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities like mining, lending, or manufacturing mining equipment.