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Fund Bought SpaceX But Still Took a Dive

Observant1
edited March 11 in Fund Discussions
SpaceX comprised 9.9% of an ETF's assets at year-end 2024.
The ETF paid approximately $135 per share for SpaceX via a SPAC.
SpaceX was valued at $526.69 per share after its recent acquisition of xAI.
Many would assume this ETF generated huge returns but they would be wrong.
One of the primary reasons for poor relative performance was a liquidity mismatch—
illiquid private investments were held in a liquid ETF wrapper.

https://www.msn.com/en-us/money/companies/this-fund-bought-spacex-why-did-it-take-a-dive/ar-AA1XFmuS

Comments

  • a2z

    FT article predicts spaceX will have a record (>$1.2t) ipo, and result longterm in the biggest retail bagholders in financial history.
    like your etf above, there may be too many early holders willing to cash out than new demand for very high priced shares. musk is to trying bribe\bypass rules for immediate index inclusion to ensure demand>supply.

    as musk fanboyz are just another meme crowd faction, that has to go away entirely to change this very much. neither the bitcoin nor djt drop has shattered their faith.
    longterm shareholders buying at the ipo may long for smaller disasters...

    image
  • DrVenture
    I assume that if more of his private businesses were public, the red ink would be far more visible. He will no doubt make out, his investors, hmmm!
  • rforno
    I continue to have faith in my (now) *huge* position in RKLB tight as a viable anti-Elon trade as the #2 public launch company, and one that seems to be more maturely run and managed.

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