Investor Gary Black of The Future Fund LLC thinks that the Nasdaq 100’s rule changes would put significant pressure on fund managers to participate in Elon Musk-led commercial space flight company SpaceX‘s upcoming IPO.
Intense Pressure On Managers
The upcoming IPO is expected to create “intense pressure” on managers and professional investors to participate, “even at a valuation north of $1T,” because “sitting out may be too risky,” Black said in a post on the social media platform X on Tuesday, citing the recent Nasdaq rule changes.
“Fund managers fret that if they sit out the SpaceX offering and the shares soar, their performance will look dismal,” he said. He added that Musk and the bankers were “well aware” of this pressure on fund managers as SpaceX gears up to sell a “record $75B worth of stock.”
This post was originally published here
