1/ Wanted to return briefly to this point and expand it slightly. In the last qtr, about 500k shares, or $162mm in NEW MONEY, came into Tezzler. Hillhouse, Steadfast, Taconic, Melqart. Leaving out Sumitomo for a moment, the other 3 bigger adds were Cap Group, Primecap and ARK.
2/ For an active manager (passives don't count for new deals), a manager either (a) makes the position a bigger % of the portfolio and thus adds to the name, or (b) new assets come into the fund and buying is pro rata, or (c) new assets in plus manager makes it a bigger position.
3/ Notice who hasn't added. Some of the biggest bulls. Jimmy A, Baron. Hmmm, I wonder why. They had a chance to buy that last deal but didn't. Very odd, especially since Baron thinks this is potentially the most valuable company in the world.
4/ Then there is the $6,000 Woman. Let's take a look at what she's done this year. From her annual report, we see in January $TSLA was an 8.7% position when her fund (ARKK) was $1.3bil. By July, when her fund was 1.7bil, she had taken Tezzler up to 11%. 
5/ Tezzler was by far her biggest net add in six months. It accounted for $77mm or 17% of all the new money into her fund (mostly from Morgan Stanley). It was also the position she increased the most as a % of the portfolio.
6/ She's been selling lately and has stated publicly she sells when a position gets too big and approaches her limit, which I think is 15% of this portfolio. Could be she's clearing the deck for some room to add, perhaps on a deal.
But whatever she could add, it's chump change.
But whatever she could add, it's chump change.
7/ Which is my point and why people need to start thinking like cap mkts bankers now. To whom do they sell NEW shares? Fidelity and T Rowe are out. To build a size book, you need size buyers. All the new money that came in in 2Q19 was. . . just $162mm.
8/ This is why it is important to look at mkt activity. I can promise you, if new buyers had been coming in and accumulating, and that was driving share prices, we'd be questioning our short thesis. But no one has for years. No new fund accumulations.
9/ You want to build a book around Lawrence Joseph and Tencent, go nuts. It ain't going to be a big book. I suppose the perfect ending here would be for Masa Son to step up to the plate. Two drunks holding each other up. And also confirmation that valuation has peaked.
Please Masa please. Step up. We NEED you on that wall, we WANT you on that wall. . .
