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– I think June was a very difficult month. It has been characterized by tough markets that threaten the trade war, "says portfolio manager Jan Petter Sissener
Its Sissener Canopus fund posted a negative return of 1.1% in June.
Tesla is the company that has pulled the most down. The stock of the electric car maker rose sharply to a record high of $ 370 in June. Through this fund, Sissener is aiming for a decline in Tesla stock prices, known as shorting, which means that it loses money in the event of a rise. .
– Tesla is said to be impatient that Elon Musk should reach his production goal, Sissener says.
- Shorthandel, shorte or shorting consists of borrowing shares which are then sold with the intention of repurchasing the shares at a later date. Then, the actions will be returned. Whoever lends the shares requires interest rate compensation for that.
- Example: You sell the stock for 100 crowns and buy the title for 80 crowns. Gain 20 crowns less interest payable to the borrower.
- One of the reasons why Shorte is to focus on price cuts. However, if the price increases, the investor may lose the purchase of shares at rates higher than the selling price.
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The goal was to produce 5,000 cars a week before the end of the second quarter to demonstrate that Tesla is able to mass-produce the Model 3.
Tesla has succeeded without impressing Sissener.
Zero gain
The portfolio manager repeatedly expressed a negative opinion about the company and shortened Tesla's stock for a long time. He is not worried about the price rises in June.
– The price of the company is completely beyond. $ 55 billion is too expensive for a company that produces a few hundred thousand cars a year. General Motors costs pretty much the same thing, but produces a lot more cars, says Sissener.
He is still doing the stock to empty. In total, he pays 130 million crowns, or about five percent of the fund. The effort has risen sharply over the last year. In April of last year, he had 50 million crowns in the bet against Tesla's share. In November of the same year, this figure rose to 90 million.
Sissener states that the average price of stenography is about $ 310 per share, about the same as the stock price ended on Tuesday.
– At the current rate, it is close to zero in the fund's earnings. We lost a game in June, but we still gained a bit in July, Sissener said.
In July, the Tesla stock once again fell on the Nasdaq Stock Exchange in the United States. Reports of listed companies on the results for the second quarter are approaching, and Sissener is confident that the market will send the stock lower.
– The result will be catastrophic. The estimate is a loss of $ 480 million during the quarter, but I think the situation worsens. He probably had some problems with the running costs.
Expecting a difficult market
The fund's best position in June was the Transocean Drilling Company
– It was due to higher oil prices and higher rate expectations.
Sissener expects a tough stock market swing in July.
– The future of the entire market depends on what is happening around the trade war and corporate reporting from the second quarter.
– US expectations are about 20% last year. It could be difficult. On Oslo Børs, there are probably oil companies that will show the biggest improvement, says Sissener.
He says that he always takes care of reading too much in quarterly numbers.
– Surprise a company positively, the title may increase slightly, but if a company buys it, it will fall up to 20%. (Conditions)
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