Tesla Bruises Another Hedge Fund With Bearish GMT Facing Losses
- Short bet contributed to 10% January drop across firm’s funds
- ‘Valuation is detached from reality,’ GMT’s Tom Claugus says
Photographer: Justin Chin/Bloomberg
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Tesla Inc.’s stock surge is taking a toll on another hedge fund manager as Tom Claugus’s GMT Capital suffered losses last month after betting against the electric-car maker.
GMT’s three Bay Resource long-short equity funds, which have roughly $3.3 billion in combined assets, each plunged about 10% in January, Claugus confirmed. Tesla’s heavily shorted stock soared 55% in the month, helped by the company’s second straight quarter of blowout earnings.