Contrarius Global Equity Fund Believes Tesla (TSLA) Remains an Extremely Undervalued Stock

Core Insights - Contrarius Global Equity Fund achieved a return of 30.9% in Q3 2025, significantly outperforming the MSCI World Index which returned 7.3% and the Average Global Equity Fund at 5.5% [1] - The fund's investment strategy is independent of benchmark considerations, leading to deviations from the benchmark World Index [1] Fund Performance - The fund's top three holdings as of September 30, 2025, include Tesla, Inc. (NASDAQ:TSLA), Warner Bros. Discovery, and Paramount Skydance, all of which have contributed significantly to the fund's performance over the past year [3] - Tesla, Inc. has been a major focus, with the fund reducing its holding when it exceeded 10% of the fund's market value due to internal risk limits [3] Tesla, Inc. Insights - Tesla's stock closed at $459.64 on December 29, 2025, with a market capitalization of $1.529 trillion [2] - Over the last month, Tesla's stock returned 7.08%, and it gained 13.82% over the past 52 weeks [2] - The fund believes that the market is just beginning to recognize Tesla's potential in real-world AI applications, such as autonomous driving and humanoid robots, and considers Tesla to be extremely undervalued [3] Hedge Fund Interest - Tesla, Inc. ranks 23rd among the 30 Most Popular Stocks Among Hedge Funds, with 120 hedge fund portfolios holding its stock at the end of Q3 2025, an increase from 115 in the previous quarter [4] - While acknowledging Tesla's potential, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]