Hedge Fund Rubric Capital Just Bet $15 Million on TuSimple (TSP) Stock

  • Rubric Capital has disclosed a $15 million investment in TuSimple (TSP).
  • On the other hand, an accident involving TuSimple's autonomous technology is sending shares lower.
  • Shares of TSP stock are down more than 70% year-to-date.
TSP stock - Hedge Fund Rubric Capital Just Bet $15 Million on TuSimple (TSP) Stock

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Shares of TuSimple (NASDAQ:TSP) are in the spotlight after the company received a $15 million investment by Rubric Capital. The New York-based hedge fund has over $2.5 billion in assets under management and is a short- to medium-term fund. It carries an average holding period of 3.33 quarters for stocks in its portfolio.

Despite the investment, shares of TSP stock are down more than 8%. This may be due to an accident attributed to the autonomous truck driving company on April 6. According to a WSJ piece published today, a truck equipped with TuSimple autonomous driving technology cut across the highway and collided with a cement barricade.

Let’s get into the details.

TSP Stock: Rubric Capital Discloses $15 Million Stake

Rubric may see an attractive investment opportunity in place with shares of TSP down more than 70% year-to-date. However, news of the autonomous truck accident seems to be carrying more weight than the Rubric investment, as evidenced by the price action today.

The accident has brought concern that TuSimple’s technology is not yet up to par with safety standards. Furthermore, the accident involved a rig with a TuSimple driver and an engineer on board. A TuSimple spokesperson disclosed that no one has hurt in the accident and said that safety is the company’s top priority. In response, the Federal Motor Carrier Safety Administration has launched an investigation into TuSimple.

TuSimple stated that the truck crashed because the driver failed to reboot the autonomous driving system before engaging it. This allegedly caused the truck to perform an outdated command. On the other hand, researchers at Carnegie Mellon University argue that it was the autonomous system’s fault, and not the driver’s fault. The researchers added that common safeguards would have prevented the accident.

Who Else Is Betting Big on TuSimple?

Tracking institutional ownership is important, as these large investors provide support and liquidity for stocks. During Q1, 139 funds reported owning TSP, a decrease of 22 funds from the prior quarter. Meanwhile, the put/call ratio sits at an extremely low 0.17. This means that more institutional investors own call options against the company than put options by a wide margin. With that in mind, let’s take a look at the top five shareholders.

  1. Xiaodi Hou, CEO: 25.36 million shares. Hou’s position is accurate as of Q4 of 2021.
  2. Sina: 24.67 million shares. Sina’s position is accurate as of Q4 of 2021.
  3. Mo Chen, Co-Founder and Director: 18.36 million shares. Chen’s position is accurate as of Q4 of 2021.
  4. Traton: 15.78 million shares. Traton’s position is accurate as of Q2 of 2021.
  5. Composite Capital Management: 9.22 million shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/hedge-fund-rubric-capital-just-bet-15-million-on-tusimple-tsp-stock/.

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