Investing in Elon Musk-Linked Investments Surging Post-Election
The recent election victory of Donald Trump has led to a significant rally in investments tied to Elon Musk, creating excitement in the investing world. One fund in particular, the Destiny Tech100 Fund (NYSE: DXYZ), has experienced a surge in value, surpassing $40 per share and reaching a gain of over 200% since Election Day.
What sets this fund apart is its focus on privately held tech companies, with Musk’s SpaceX being a prominent holding that makes up more than a third of the fund’s portfolio. Alongside SpaceX, the fund also holds positions in Axiom Space, Epic Games, and OpenAI, offering investors exposure to innovative and rapidly growing companies in the tech sector.
While the rally in the Destiny fund may be enticing for some investors, it’s important to consider the fund’s valuation. With the latest unaudited financial report showing a net asset value per share of $5.15 as of June 30, the fund is currently trading at a premium of approximately 700% above that valuation. This premium may give some investors pause, as it indicates a significant discrepancy between the perceived value of the fund and its actual net asset value.
The Destiny Tech100 Fund, launched in March, has seen fluctuations in its share price, reaching as high as $105 per share in April before dropping below $10 per share in August. While closed-end funds like DXYZ often trade at a gap to their net asset value, the magnitude of the premium for the Destiny fund is noteworthy, as it is more common for funds to trade at a discount rather than a premium.
With a diverse portfolio of 22 companies and plans to expand to 100, the Destiny Tech100 Fund offers investors exposure to a range of promising tech companies with growth potential. Managed by Destiny XYZ CEO Sohail Prasad, the fund carries a management fee of 2.5%.
As the investing landscape evolves post-election, keeping an eye on funds like the Destiny Tech100 Fund can provide investors with unique opportunities to capitalize on the growing influence of companies like SpaceX and the innovative tech sector as a whole. Stay tuned for updates and insights on the latest trends in investing from Extreme Investor Network.