While the world mocked those who entered SpaceX after its IPO, buying at prices that now seem like science fiction, one of the world’s best-known fund managers has continued accumulating $SPCX shares at any price. Either this will go down in history as the worst investment ever, or there is something ordinary investors do not know.
The manager in question is ARK, the investor behind it is Cathie Wood, and the combined positions amount to just under $500 million. For context, as of today, the SpaceX position is the third-largest holding by value across all funds managed by ARK.
The investment figures
We have tracked day by day the moves made by Cathie Wood, also because the veteran investor operates in several crypto stocks and also manages a Bitcoin ETF. This time, however, what is interesting is not her list of moves in the crypto world, but what she is once again doing with companies led by Elon Musk.
| Ticker | Company | Market value | Weight |
|---|---|---|---|
| TSLA | Tesla, Inc. | $870.6M | 7.44% |
| AMD | Advanced Micro Devices | $520.4M | 4.45% |
| SPCX | Space Exploration Technologies Corp. | $495.8M | 4.24% |
| SHOP | Shopify | $389.6M | 3.33% |
| TEM | Tempus | $376.2M | 3.22% |
| AMZN | Amazon | $375.9M | 3.21% |
| CRSP | CRISPR Therapeutics | $363.3M | 3.10% |
| PLTR | Palantir Technologies | $342.1M | 2.92% |
| TXG | 10x Genomics | $335.4M | 2.87% |
| COIN | Coinbase | $326.0M | 2.79% |
This is the list of stocks held by ARK funds, ranked by the total value of their positions. Tesla remains at the top, AMD—which has been gradually reduced for some time—is second, with only a $30 million lead over the third-largest holding, namely SpaceX.
In all likelihood, the overall SpaceX position will become the second-largest, if not the largest, both because there is a strong possibility that ARK will continue buying and because only a modest price increase would be enough to overtake AMD.
At its highest post-IPO price, SpaceX would already become Cathie Wood’s largest investment by size. Alternatively, Tesla would need to decline. In any case, the direction is clear, and it is strongly at odds with what the rest of the market is doing.
What about the unlock?
Two days after SpaceX’s quarterly results—which are scheduled for August 4—a significant number of the group’s shares may reach the market. What markets fear is that there will be another wave of selling.
However, the process is not so automatic. Those intending to sell may already have hedged their positions with shorts, which would be closed out in the event of the unlock.
