The Korea Investment Management Co fund, an investor in Tesla Inc TSLA since 2017, has gradually lowered its exposure to the Elon Musk-led company to its lowest level, Bloomberg News reported on Friday, citing the fund manager.
What Happened: South Korea’s first mutual fund dedicated to investing in the electric-vehicle sector has lowered its Tesla exposure to less than 3% of its net asset value, from as high as 9% earlier.
“We sought to lower volatility in the portfolio by reducing our exposure to stocks and taking profit in our top holdings,” the report said, citing Hwang Woo-taek, who manages the fund’s assets.
See Also: Tesla Battery Supplier Panasonic Cuts Entire Stake In Elon Musk Company
Where Next? The fund did not reveal details of the profit. It has however been raising exposure in Chinese EV companies instead.
The Korean fund added names including BYD Co BYDDY and Xpeng Inc XPEV in March and April on the dip.
The fund, according to the report, has outdone 98% of its peers over the past three years on the back of Tesla but suffered a 20% loss so far in 2022.
The Korea Investment Management Co is waiting to buy more shares in Tesla as it rolls out more innovations, including the launch of Cybertruck, the report said.
Price Action: Tesla closed 0.4% lower at $705.2 on Friday.
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