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Investment Arm of World's Second-Largest Reinsurer Swoops In On Nio, Tesla Stock In Q1

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Investment Arm of World's Second-Largest Reinsurer Swoops In On Nio, Tesla Stock In Q1

NIO Inc. (NYSE: NIO) shares have taken off after bouncing off a triple bottom formation last week. A series of company-specific catalysts are lined up in the weeks ahead. The electric vehicle stock has attracted institutional as well as retail investors. 

What Happened: MEAG MUNICH ERGO, the investment arm of German reinsurer Munich Re, has increased its holdings of Nio American depositary shares, according to 13F filing by the firm.

At the end of the first quarter, Munich Ergo held 107,800 shares in Nio valued at $4.202 million. This represents an 28.64% increase from the 83,800 shares the firm held at the end of the fourth quarter of 2020.

Munich Ergo also increased its stake in EV giant Tesla, Inc. (NASDAQ: TSLA), with the firm now holding 24,266 Tesla shares valued at $16.208 million, up from 5,685 shares.

The firm also bulked up its positions in tech stocks such as Microsoft Corporation (NASDAQ: MSFT), Logitech International S.A. (NASDAQ: LOGI), NVIDIA Corporation (NASDAQ: NVDA), and health care companies Johnson & Johnson (NYSE: JNJ) and AbbVie Inc. (NYSE: ABBV).

Related Link: Dalio's Bridgewater Nearly Doubled Stake In Nio As Institutional Investors Pile Into EV Maker

Why It's Important: Institutional buying sends a positive signal regarding the company's fundamental strength.

When smart money flows into a stock, retail investors take it as a cue and gravitate toward the stock.

The top institutional holders of Nio include Baillie Gifford and Co., BlackRock, Inc. (NYSE: BLK) and Vanguard Group.

Last week, the Street was awash with rumors that Ark Invest's Cathie Wood may be eyeing adding Nio to the investment management firm's ETFs.

Related Link: What to Expect From Tesla's Q1 Earnings Report On Monday

Photo courtesy of Nio.

 

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