Fidelity OTC fund boosted SolarCity stake by 20 percent in May

Sign is seen at the SolarCity building in Denver

BOSTON (Reuters) – The Fidelity OTC Portfolio, the largest fund investor in SolarCity Corp, boosted its stake in the company by 20 percent in May, just weeks before Tesla Motors offered to buy the solar panel maker for about $2.8 billion.

Run by Gavin Baker, the $12 billion Fidelity OTC Portfolio on Thursday disclosed owning about 8.69 million shares of SolarCity at the end of May, up from 7.22 million in the previous month.

The fund owned just 4.8 million SolarCity shares at the end of October, but that position surged afterward amid a sharp decline in the company’s stock price.

(This story corrects share count figure in third paragraph to 4.8 million instead of 1.38 million.)

(Reporting by Tim McLaughlin; Editing by Chizu Nomiyama)