Rowan Street Capital’s New Addition: Tesla (TSLA)

Core Insights - Rowan Street Capital's Q4 2025 investor letter indicates solid results for the year, but underperformance compared to the S&P 500 Index, with a return of +11.1% versus +17.9% for the Index [1] - The firm achieved a cumulative net return of +252% over the past three years, significantly outperforming the Index's +78% during the same period [1] - The performance in 2025 was notably driven by Tesla, which was a new position for Rowan Street [1] Company Performance - Tesla, Inc. (NASDAQ:TSLA) closed at $417.32 per share on February 9, 2026, with a one-month return of -6.68% and a twelve-month increase of 27.04% [2] - Tesla has a market capitalization of $1.566 trillion, indicating its significant presence in the market [2] Investment Strategy - Tesla was the only new core investment initiated by Rowan Street in 2025, with the position being built during a period of low investor confidence [3] - Tesla ranks 23rd among the 30 Most Popular Stocks Among Hedge Funds, with 120 hedge fund portfolios holding the stock at the end of Q3 2025, an increase from 115 in the previous quarter [4] - While acknowledging Tesla's potential, the firm suggests that certain AI stocks may offer greater upside potential with less downside risk [4]