On 2022-03-31 ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. changed its ownership of TSLA from 223.22k to 249.8k. The current market value for these shares is 269.18M. As of Apr 25th, 2022 TSLA represents 0.63% of their total portfolio.
It is useful to know how a fund is performing overall. This provides an indication of their ability to select stocks and build a profitable portfolio. It is tough to beat the market, and even tougher for funds because they need to have proper asset allocation relative to their fund's risk profile.
First, let's look at the fund itself to get some context before looking at the performance. ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. currently holds 931 different investments in their portfolio and have a current fund value of $42.97B. We can see based on the size of the fund that TSLA, representing 0.63% of their total portfolio, is a pretty significant holding.
Let's take a closer look at ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. to see how they've performed as a whole. Here are their returns
So this gives us a good sense of ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. performance as a fund. What we want to look at now is how they have managed their TSLA holdings as part of their fund.
They first added TSLA to their fund in 2015-06-30, which is a while ago. As mentioned earlier, they changed their holdings of TSLA by 11.31% by buying 26,574 shares at an average price per share of $1,070
There are several reasons a fund buys or sells different holdings in its portfolio. Most of the time they are rebalancing their portfolio to ensure it aligns with the fund's objectives and risk tolerance. When we see a relatively small change in holdings for a particular stock that they already own then it might not be particularly insightful. If we see a fund take a significant position in a company or sell a significant position then that is a sign of its conviction regarding the future performance of the company in question.
As an investor, this is useful to know because it provides an interesting data point in terms of what "smart" money thinks about a stock. Fund managers might come out and say positive or negative things about a company, but knowing where they actually put their money is more telling. This should be taken with a grain of salt because sometimes funds are wrong in their plays. You also have to look at the track record in terms of stock picks and performance.
Looking at ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. recent re-allocation of its TSLA holdings seems to be pretty straightforward and likely part of their risk management and rebalancing requirements.