Written by Cláudio Afonso | LinkedIn | X
Since the first quarter of 2023, Geode has been increasing its position in the electric vehicle (EV) maker Nio by between 3% and 5% every quarter, and the last quarter was no exception.
Geode Capital Management, Fidelity’s index fund arm, acquired 232,135 additional shares in Nio during the second quarter, bringing its total holdings to 7,885,425 shares — a sequential increase of 3.03%.
Over the same period, the fund also increased its position in the luxurious EV maker Lucid Motors by 9.62% owning now $52.1 million worth of shares. Based on Friday’s closing price of Nio shares, Geode’s stake in the Shanghai-based company is now valued at about $30.2 million.
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The fund bought its first shares in Nio in the first quarter of 2019, shortly after the initial public offering. At the time, Geode bought 39,425 shares and has been accumulating almost every quarter over the last 5 years.
Founded in 2001, Geode closed the second quarter with $1.375 trillion in Assets Under Management, with Apple, Microsoft, and chip giant Nvidia as its top three holdings.
As of today, Nio has 623 institutional shareholders who collectively hold 326.7 million shares, according to data from Fintel.
Geode Capital Management operates independently but is closely integrated with Fidelity Investments, as it oversees a substantial portion of Fidelity’s index and passive investment strategies.
As reported last month, SG Americas, the U.S. broker-dealer subsidiary of France’s third-largest listed bank Société Générale, has also increased its holdings in the company.
After buying the first shares in the electric vehicle (EV) maker back in early 2019 (73,837 to be precise), the fund increased its position in the company in the following quarter up to 3,641,105 — the most shares it ever owned.
In early 2022, the company reached its peak of institutional ownership, with nearly 600,000 shares held by institutional investors when the stock price traded between $20 and $30 per share.
In the second quarter, Sweden’s third largest pension fund, AMF Pensionsforsakring AB, has reduced its position in by selling 562,700 shares, as revealed in a form filed last week.
During the second quarter, the fund increased its stake in Geely’s EV brand Polestar by 400 percent by adding 17.5 million shares. AMF’s current position in Polestar is valued at nearly $21 million.
Written by Cláudio Afonso | LinkedIn | X
