Photo: SpaceX / CC0
Scottish Mortgage Investment Trust, one of Elon Musk’s longest-standing backers, said Friday that its SpaceX stake has fallen to 11.1% of total assets, down from 15% at the end of September.
The Baillie Gifford-managed fund trimmed the position after lockup restrictions from SpaceX’s blockbuster June IPO lifted, and said it keeps high conviction in the rocket and satellite company. The position added 8 percentage points to returns and helped drive a 31.5% net asset value gain in the six months through September 30, against a 16% return for the FTSE All-World Index, the trust’s half-year results show. Proceeds also helped the trust repay borrowings and reduce gearing.
In the same report, the trust revealed that it sold the last of its Tesla shares back in April – months before this week’s slide in the stock. The sale ended an investment dating to 2013 that generated about $6.2 billion in realized profit on roughly $470 million invested – a 13-fold return over 13 years, CNBC reported.
Scottish Mortgage first invested in SpaceX in December 2018, when the company had a reported valuation of about $31 billion. The trust invests globally in public and private high-growth companies with a long-term view.
JBizNews Desk | London
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