JPMorgan potentially made $1 billion after boosting its Tesla stake by 600% last quarter | Markets Insider
JPMorgan Chase potentially made over $1 billion from Tesla in under two months. The bank's investment arm boosted its stake by 600% last quarter to around 2.5 million shares. Those shares have surged in value from $1.1 billion to $2.1 billion following Tesla's stock rally. JPMorgan may have netted more than $2 billion if it bought and sold at the right time. Visit Business Insider's homepage for more stories.
JPMorgan Chase may have made over $1 billion from Tesla in less than two months. It boosted its stake in Elon Musk's electric-car startup by about 600% last quarter, before its stock price roughly doubled this year. The banking titan's investment arm added 2.2 million Tesla shares in the final three months of 2019, ending the year with more than 2.5 million shares or a 1.4% stake, according to SEC filings and Bloomberg data. Those shares were worth about $1.1 billion then, based on Tesla's stock price of $418 on December 31. They're now worth about $2.1 billion, as Tesla shares currently trade at $845. JPMorgan may have raked in more than $1 billion. If it snapped up the Tesla shares when they traded at $250 in early October, then sold them at their $970 peak earlier this month, its investment would have surged in value from under $650 million to nearly $2.5 billion — a return of close to $2 billion. Other investors have probably cashed in on Tesla's rocketing stock too. Renaissance Technologies increased its holding by more than 400% last quarter, making it Tesla's seventh-biggest shareholder with a 2.1% stake. The hedge fund potentially netted more than $1.5 billion from the move. Tesla's astounding stock rise has lifted its market capitalization to north of $150 billion, surpassing the combined market caps of automotive titans GM, Ford and Chrysler. However, critics ranging from investors and industry veterans to politicians argue the rally isn't based on anything substantive, and warn it will run out of steam.Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
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Warren Buffett, George Soros, and other billionaire investors made big moves last quarter. Here are 11 of their juiciest trades.
Billionaire investors including Warren Buffett and George Soros made striking changes to their portfolios last quarter....Billionaire investors including Warren Buffett and George Soros made striking changes to their portfolios last quarter. David Einhorn's Greenlight Capital took a stake in Disney, Dan Loeb's Third Point tripled its Amazon holdings, and Seth Klarman's Baupost Group backed Google and Facebook. We picked out some of the most noteworthy trades in the period. Visit Business Insider's homepage for more stories. Warren Buffett, George Soros, and other billionaire investors made significant changes to their portfolios in the first quarter, as they looked to capitalize on the coronavirus sell-off and weather the market meltdown. David Einhorn's Greenlight Capital, Dan Loeb's Third Point, Bill Ackman's Pershing Square, and other high-profile funds revealed their purchases and sales in financial filings last week. Here are 11 of the juiciest trades in the period:Warren Buffett's Berkshire Hathaway sold 84% of its Goldman Sachs stake The famed investor's company threw a $5 billion lifeline to the investment bank in 2008, in exchange for preferred shares paying a 10% dividend, and warrants allowing it to buy a chunk of Goldman's common stock at a discount in the future. After selling most of its stake last quarter, Berkshire has raked in more than $3 billion from the deal so far. Source: SEC George Soros' fund bought Disney and Peloton shares Soros Fund Management reported a new Disney stake worth about $5 million at the end of March. It also bolstered its Peloton stake more than ten-fold to nearly 3 million shares, worth about $79 million at the time. Source: SEC David Einhorn's Greenlight Capital piled into Disney, Tesla, and Berkshire Hathaway Einhorn's fund revealed new positions in all three companies. It reported $11 million stakes in both Disney and Berkshire at the end of March, and held about $6 million in Tesla stock. Source: SEC Read more: 10 big-money investors each share the single market risk they think traders are overlooking right now Seth Klarman's Baupost Group snapped up Google and Facebook stock The value investor dubbed "the next Warren Buffett" was more adventurous than the Berkshire boss in the period. Klarman's Baupost revealed stakes in Google-parent Alphabet and Facebook, worth about $350 million and $330 million respectively. Source: SEC Stanley Druckenmiller's fund bought Disney shares, dumped Snap and Uber Druckenmiller's Duquesne Family Office took a $3 million stake in Disney last quarter. It also exited its Snap position, and slashed its Uber holdings from about 2.6 million shares to only 400. Source: SEC Dan Loeb's Third Point made big bets on Amazon and Disney Loeb's fund tripled its Amazon stake to 215,000 shares, worth $419 million at the end of March. It also took a stake in Disney valued at $138 million. Source: SEC Read more: Tens of billions in redemptions, hundreds of billions in losses: Here's a look at how the hedge fund industry hemorrhaged money in March Bill Ackman's Pershing Square bought Berkshire Hathaway and Starbucks Ackman's fund used the $2.6 billion it made by hedging the market meltdown to bolster its stakes in several key holdings last quarter. It grew its Berkshire stake by more than a third to 5.5 million shares, its Hilton holdings by almost a third to roughly 14 million shares, and its Starbucks position by more than 80% to north of 10 million shares. Source: SEC Carl Icahn nearly quadrupled his stake in Occidental Petroleum Icahn bolstered his investment in debt-ridden Occidental Petroleum by more than 290% last quarter, from about 23 million shares to 89 million. The activist investor complained in April after the oil-and-gas giant opted to pay its dividend to Warren Buffett in stock to save cash. "I can't argue with you that it was one of the most ridiculous deals that I've ever seen," he said in an interview last month. Source: SEC Howard Marks' Oaktree Capital more than doubled its Alibaba holdings Oaktree boosted its stake in the Chinese e-commerce titan by roughly 140% to 391,000 shares last quarter. The stake was worth about $76 million on March 31. Marks has been a vocal skeptic of the recent US stock rally. He warned it was pretty much impossible to predict how the coronavirus pandemic will pan out, and argued "the world is more than 15% screwed up." Source: SEC Read more: Buy these 14 bank stocks that are jarringly cheap and positioned for extreme moves higher, BTIG says David Tepper's fund bought Netflix, Tesla, and Twitter Tepper's Appaloosa Management boosted its technology investments last quarter. It built a $136 million stake in Twitter, a $96 million stake in Netflix, and positions valued below $25 million in Microsoft and Tesla. Source: SEC John Paulson more than quadrupled his Tiffany's stake Paulson & Co boosted its Tiffany & Co holdings from about 134,000 shares to more than 600,000 last quarter. The stakes was valued at $78 million at the end of march. The iconic jeweler is set to be acquired by LVMH, the French luxury conglomerate that owns Louis Vuitton, Moët, Hennessy, and other high-end brands. Source: SEC Read more: A BlackRock money manager overseeing the top healthcare fund of the past 20 years pinpoints 3 growth areas she's betting on — and one she's avoiding amid the coronavirus recovery
Tesla CEO Elon Musk is on the verge of a $750 million payday, Reuters first reported...Tesla CEO Elon Musk is on the verge of a $750 million payday, Reuters first reported Tuesday morning. Musk stands to receive an option tranche of 1.69 million Tesla shares if the electric car market reaches a six-month average market cap of $100 billion. With Tesla shares sitting near all-time highs, the company's six-month average market cap just reached $96 billion. Visit Business Insider's homepage for more stories. Reuters first reported Tuesday morning that Tesla CEO Elon Musk is on the verge of receiving a massive $750 million payday. The electric-car maker's CEO will receive his first option tranche of 12 tranches total, as outlined in his two-year-old pay package. Each tranche gives Musk the option to buy 1.69 million Tesla shares at $350.02 each. Based off of Tesla stock's Monday closing price of $798.75, Musk could turn around and sell those shares for a total profit of $758 million. Musk will be granted the first tranche of options if Tesla's stock price obtains a six-month average market capitalization of $100 billion. With shares trading just 15% below their all-time high closing price of $917.42, Tesla's six-month average market capitalization is $96 billion. Read more: Tim Bratz went from flipping $14,000 houses to a 3,472-unit portfolio worth $275 million. Here's the 'amazing' investment strategy he employs to build his long-term wealth. If Musk reaches all targets outlined in his pay package, which would culminate with Tesla's market cap reaching $650 billion, the CEO could reap as much as $55.8 billion. However, because new Tesla shares have been issued since this pay package was put in place, that figure is now likely lower. Tesla's current market capitalization of almost $150 billion is more than the combined market capitalization of Honda, Ford, General Motors, Fiat Chrysler, Mercedes-Benz, and Harley-Davidson. Tesla reports first quarter earnings after the market close on Wednesday.Join the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet
Warren Buffett will 'let everybody know' once he invests the bulk of Berkshire Hathaway's $128 billion cash pile, Bill Ackman says
Warren Buffett stepped in to reassure investors and bail out struggling companies during the 2008 financial...Warren Buffett stepped in to reassure investors and bail out struggling companies during the 2008 financial crisis, but has been quiet during the novel coronavirus meltdown. The Berkshire Hathaway boss may be investing most of the conglomerate's $128 billion cash pile and not shouting about it to avoid raising prices, hedge fund billionaire Bill Ackman told Vanity Fair. "After he invests that $100 billion and change," the Pershing Square chief told the magazine, "he'll let everybody know." Pershing boosted its stakes in Berkshire Hathaway and other companies last quarter, while Berkshire has only revealed sales in recent weeks. Visit Business Insider's homepage for more stories. After bailing out distressed companies and penning columns to calm investors during the 2008 financial crisis, Warren Buffett has kept a low profile so far during the market's coronavirus driven meltdown in 2020. The billionaire boss of Berkshire Hathaway might be busy plowing a big chunk of the conglomerate's $128 billion cash pile into stocks, and keeping quiet to avoid spiking prices, hedge fund billionaire Bill Ackman told Vanity Fair. "After he invests that $100 billion and change," the Pershing Square chief told the magazine, "he'll let everybody know." Buffett might also prefer to work in the shadows rather than shoulder the responsibility of reassuring Wall Street again. "Maybe he doesn't want to be the hero this time around," an unnamed "longtime Buffett watcher" told Vanity Fair. Read more: A Wall Street strategy chief lays out 8 stock trades that can give investors an extra jolt of returns as the post-coronavirus rally enters a new phase Ackman, a longtime admirer of Buffett, certainly capitalized on the recent sell-off. After the value of Pershing Square's shares in Hilton, Burger King-parent Restaurant Brands, Lowe's, and Berkshire Hathaway plunged, he boosted its stakes in all four companies by more than 25%. Ackman also reinvested about $720 million into Starbucks after exiting a position in the coffee giant in January. Meanwhile, Berkshire has sold about $390 million worth of Delta Air Lines and Southwest Airlines stock and trimmed its stake in Bank of New York Mellon in recent weeks. Buffett has been "circling the hardest-hit companies in the travel, lodging and entertainment sectors," The Wall Street Journal reported this month, but no deals have been made public. Berkshire's cash pile exceeded the individual market capitalizations of Tesla, Starbucks, Nike, and McDonald's at points in March, underscoring its wealth of opportunities. Read more: Bank of America's wealth-management chief overseeing $2.7 trillion says investors must make 3 permanent changes to thrive in a market ravaged by the coronavirusJoin the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet