Source: Finance Association
① Since the launch of the Destiny Tech100 Fund two weeks ago, the increase was as high as 818%; ② This closed-end fund provides investors with an opportunity to invest in unlisted companies; ③ The fund's main holding companies include SpaceX, Epic Games, and OpenAI.
Over the past two weeks, an American closed-end fund management company —$Destiny Tech100 (DXYZ.US)$Its stock price has soared like crazy, and the reason is simple: it provides investors with the opportunity to invest in high-growth private tech giants such as SpaceX and OpenAI, and these unlisted companies are out of reach for most investors.
According to reports, Destiny Tech 100 was only listed on the New York Stock Exchange on March 26, and its stock price soared 818% in just two weeks, drawing market attention. On Friday, the stock's gains were even more impressive. The biggest increase reached nearly 126%, closing with a closing increase of more than 76%, and a turnover of over 300 million US dollars.
According to the company's official website, the original purpose of the fund was to include 100 top private technology companies in its investment portfolio, giving everyday investors the first chance to access these leaders in the private equity market. Currently, however, the closed-end fund only holds shares in 23 companies.
According to the official website, the fund's largest holdings so far are Elon Musk's SpaceX, accounting for 34.6% of the total positions; while the well-known artificial intelligence company OpenAI accounts for 3.8% of the holdings.
Destiny Tech100 said its fund provides investors with an opportunity to reap amazing returns before the company goes public. Traditionally, these benefits have been limited to venture capital, and open market investors have limited access to them.
“For many companies in the pre-IPO stage, there is a real opportunity to achieve 10-50x returns.” The company wrote on its official website.
However, it is not easy to be included in this fund. It is understood that these companies must be reviewed by top US institutional investors and meet key health indicators. Furthermore, companies in portfolios have generally reached the level of maturity and stability required to support late-stage venture capital firms.
The fees are also not cheap for investors: the Destiny Tech 100 fund has an annual management fee of 2.5%.
Some analysts believe that Destiny Tech 100's stock price performance may mean that price fluctuations in the primary market are affecting the market value of secondary market holders. Furthermore, the market's recognition of future technology is still very high, market liquidity is still abundant, the A-share market may usher in a new mapping, and companies that invest in a large number of technology stocks (venture capital concept) may be sought after.
Editor/jayden