I know it has been a while but I noticed today that the fee for the Baron Partners Fund has been lowered by 0.66%. (to 1.3% for BPTIX and 1.56% for BPTRX)
As of 6/30/21 SpaceX made up ~4.3% of the fund, while TSLA is 38.1%.
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As of 6/30/21 SpaceX made up ~4.3% of the fund, while TSLA is 38.1%.
Shares would seem to be better if one hopes to continue holding Starlink, assuming Starlink's share price immediately rises when it starts trading. I'd be concerned about being paid out at the IPO/spinoff price and then having to buy on the open market at a higher price. But I don't know.
when starlink spins off from spacex the Baron fund gets newly minted starlink shares which they can hold or sell. The value of SX + ST shares after the spinoff = SX value before the move. Investors in the fund still have shares of the fund. Not only do I expect Baron would keep the new shares (except for some profit taking on an initial bump) they would probably get some from any kind of fund raising share sale offered in conjunction with the separation. Fund owners get an even more aggressive set of holdings but don’t receive any more shares of anything.
Forge notified me that is now $500sh per share if it becomes available.
First Principles Group has a current opportunity that looks like it will only be open for "Qualified Purchasers"
Bet TSLA
Active Member
And there's a 20% carry. Can somebody refresh my memory as to how that isn't simply the action of "barnacles"? It's 20% of any profit (depending on the details of how it's computed) for doing nothing at all and taking no risk, isn't it?
I passed on these deals also for fear of being the last person paid if something went sour on the deal, the principles always come out smelling like roses.
I was debating that to myself. What is more likely, that Tesla will become a 7 Trillion dollar company in 10 years or that SpaceX will become a 1T dollar company? Also factor in the 20-25% carry on SpaceX and lack of liquidity to that analysis. I think it is pretty close actually. I will stick to Tesla for now, but if I can get in SpaceX with decent terms, I'll do it as it would allow me to diversify my portfolio.
If you factor in the 20-25% carry + 2% annual management fee, a $5 trillion Tesla by 2030 is more comparable to a 10 x movement in SpaceX- and no worries about liquidity concerns. I think on a 20+ year time horizon SpaceX takes the cake though
SpaceX is not a public traded company right now, but there are rumours that it will go public in the near future. Are SpaceX projects and innovation being funded by Tesla Inc? If so, what happens when it goes public? Do current TSLA shareholders get any benefits as far as SpaceX listing goes?
RobDickinson
Active Member
SpaceX wont go public.
You can invest in a fund raising round sometimes if you are lucky and have a lot of cash.
SpaceX might spin off Starlink on its own through an IPO in a few years.
Theres no financial connection between SpaceX and Tesla other than spacex buy tesla equipment and they share a few employees.
You can invest in a fund raising round sometimes if you are lucky and have a lot of cash.
SpaceX might spin off Starlink on its own through an IPO in a few years.
Theres no financial connection between SpaceX and Tesla other than spacex buy tesla equipment and they share a few employees.
The purpose of SpaceX is Mars. Elon owns the majority of SpaceX. He needs to own the company to maintain its mission. Colonization of Mars will cost tens of billions of dollars, a seriously money-losing venture that's not compatible with fiduciary responsibility to shareholders.
SpaceX could spin off Starlink at some point as a public company.
Don't forget the benefit of diversification. I could probably have placed my SpaceX money in Tesla for similar or even greater growth, but I already own too much TSLA.
It's no different than any other business. They offer a product that I can't put together on my own. The real barnacles come out when the company goes public and shares are flipped to retail for an instant profit.
I've been in the First Principles group since March 2021 and wasn't notified of this opportunity. Any idea what their criteria for "Qualified Purchaser" are?
I joined First Principles Group as a qualified purchaser but I was also not notified of any opportunity. I know their allocation was very small so I'm assuming they filtered by qualified purchasers, and then did another filter on top of that, perhaps either included only people they knew well, or filtered by people willing to invest X dollar amount.
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