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Tortoise makes ‘sensibly contrarian’ long Meta bet

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Tortoise, a London-based hedge fund manager that has out performed 99% of its long-short equity rivals so far this year, feels the time is right to be “sensibly contrarian” and has out demonstrated the courage of its convictions with a long bet on Facebook owner Meta Platforms Inc, according to a report by Bloomberg.

Tortoise, a London-based hedge fund manager that has out performed 99% of its long-short equity rivals so far this year, feels the time is right to be “sensibly contrarian” and has out demonstrated the courage of its convictions with a long bet on Facebook owner Meta Platforms Inc, according to a report by Bloomberg.

The report cites manager Tom Morris as describing the firm’s Liontrust GF Tortoise Fund, as a “value-focused hedge fund” that seeks out shares it regards as undervalued, a strategy that has seen it record a 22% gain so far this year. By comparison the MSCI All-Country World Index is up 17% while the Bloomberg Equity Long/Short Hedge Fund Index is down 12%.

And while one of Silicon Valley’s ‘big beasts’ would not normally feature on a Tortoise shopping list, Morris has adopted a “cautiously optimistic stance”on going against the tide with Meta – in which it took a long position last month – and other big tech stocks.

The report cites Bloombeg data as showing that having lost almost 70% of its value this year, Meta is trading at about 11 times 2023 earnings, half the price-to-earnings levels seen a year ago.

According to regulatory filings made at the end of October, Tortoise’s other long tech positions include IBM Corp, plus chipmakers Micron Technology Inc and Intel Corp, while the fund also recently closed short positions in two other semiconductor firms Nvidia Corp and Advanced Micro Devices Inc.

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