Chris Mack, a stock portfolio manager at the investment adviser Harding Loevner in Bridgewater, N.J., has plenty of good things to say about Tesla as an innovative company. But he doesn’t own the shares in his funds, which is focused on buying large cap technology companies that have a proven track record of profitability, making them suitable for long-term holdings. Of that, more than $4.5 trillion are in index funds designed to mirror the stocks in the S&P. Those funds have been buying up shares of Tesla since mid-November in preparation for Tesla’s admission to the S&P 500, which has sent its shares up over 60 percent since the announcement that the company would be included. S&P Dow Jones Indices, which owns the index, considered phasing Tesla in to make it easier for index funds to add the shares they need.

Source: New York Times December 18, 2020 20:26 UTC