Scottish Mortgage drops Facebook and diversifies away from Tesla

First reduction to Amazon not driven by diversification concerns

James Baxter-Derrington
clock • 3 min read

Scottish Mortgage Investment Trust has fully exited its stake in Facebook and sold down its Tesla holding to ensure “an appropriate level of diversification,” according to its biannual report.

The trust had been reducing its position in Facebook for some time, but has now completely exited the social media giant, leaving the portfolio with only three of the FAANG mega stocks - Google parent company Alphabet, Amazon and Netflix. It has also reduced its position in the Jeff Bezos giant, though not for purposes of diversification, citing the $1.5trn capitalisation. It said the valuation "makes the path to large future returns more challenging", although the firm remains the second largest holding at 7.9%. Morningstar downgrades Scottish Mortgage as Stifel says to take profi...

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