Baron Funds has partnered with SpaceX, a leading space technology company founded by Elon Musk.
This partnership allows Baron Funds to invest in SpaceX's growth and expansion.
SpaceX aims to reduce space transportation costs and enable the colonization of Mars.
The partnership enables Baron Funds to tap into the potential of the space industry.
Baron Funds has made significant investments in various sectors, including technology and healthcare.
SpaceX's innovative approach to space travel has garnered significant attention and investment.
Check this out: Baron Partner Funds
Ron Baron's Investment Fund
Ron Baron has a long history of investing in companies linked to Elon Musk, including Tesla, SpaceX, and xAI.
He first invested in SpaceX in 2017 and now owns around 1.2% of the company, which was recently valued at $210 billion.
Baron Capital Management launched new funds to invest in xAI and SpaceX, which give investors a way to invest more heavily in these companies.
The new funds, BaronX Cayman and BaronxAI, charge a management fee of around 1% annually and require investors to lock up their money for eight years.
For another approach, see: Ron Baron Mutual Funds
Baron has high hopes for SpaceX's future, predicting it could reach a valuation of $250 billion if it goes public in three years and $500 billion to $600 billion by 2030.
He also recently correctly predicted the bottom for Tesla shares, which are now up 51% since his prediction.
Here are some key facts about the new funds:
These funds offer a unique opportunity for investors to gain exposure to private companies connected to Elon Musk, with the potential for high returns in the future.
Tesla and SpaceX Connection
Ron Baron's mutual fund, Baron Partners, has seen a significant outflow of funds, totaling $7.2 billion from early 2022 to May 2024.
The fund's assets are still largely invested in Tesla, with about 29% of its assets dedicated to the automaker. Baron correctly predicted Tesla's stock price would hit bottom on April 25, and since then, the stock price has risen 51%.
Since 2003, Baron Partners' average annual return rate has been close to 16%, making it one of the top stock funds in the United States, according to Morningstar.
The fund's performance has been volatile due to its concentration on Tesla, but it's had a remarkable run since Baron's prediction came true.
Worth a look: Madison Dearborn Partners Stocks Today
Frequently Asked Questions
Does Baron Partners fund own SpaceX?
Yes, Baron Partners fund owns a significant position in SpaceX, with a 5.7% allocation to the company. This is part of a larger bet on Musk-owned businesses, which make up about 50% of the fund's assets.
Which funds have invested in SpaceX?
Unfortunately, none of the listed funds have invested in SpaceX, but becoming a SpaceX employee is an option.
What stocks does Ron Baron own?
Ron Baron's notable holdings include Arch Capital Group, Gartner, and CoStar Group, with a combined value of $14 billion. These investments showcase his diverse portfolio and expertise in various industries.
Sources
- https://www.teslarati.com/tesla-ron-baron-100m-spacex-investment-3-5x-tsla-returns/
- https://news.futunn.com/en/post/45148107/tesla-fanatics-have-launched-several-new-funds-providing-investment-opportunities
- https://www.tradingview.com/news/benzinga:4b05fc76f094b:0-tesla-investor-elon-musk-fan-ron-baron-launches-new-fund-focused-on-spacex-xai/
- https://www.baroncapitalgroup.com/article/investor-series-baron-focused-growth-fund-focused-highly-differentiated-investment-approach
- https://www.bnnbloomberg.ca/business/technology/2024/07/17/early-tesla-backer-launches-funds-focused-on-musks-xai-spacex/
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