The world's largest sovereign wealth fund has invested $1.2 billion in SpaceX shares

Norway’s Government Pension Fund, which manages $2.3 trillion in assets and is considered the world’s largest sovereign wealth fund, has disclosed its stake in Elon Musk’s aerospace company SpaceX. The information appeared in an updated list of the fund’s assets, as noted by Reuters.

As of June 30, the Norwegian sovereign wealth fund held a 0.05% stake in SpaceX, valued at $1.22 billion.

This stake appears modest compared to other tech stocks in the fund’s portfolio, Reuters notes. The portfolio includes, for example, a 1.28% stake in Nvidia worth $62 billion, a 1.24% stake in Apple worth $52 billion, a 1.17% stake in Alphabet worth $50 billion, a 1.27% stake in Microsoft worth $35 billion, and a 1.7% stake in Taiwan Semiconductor Manufacturing worth $34 billion.

The fund is managed by Norges Bank Investment Management. It was established in the 1990s to invest the Norwegian government’s revenue from oil and gas production. Today, it owns an average of 1.5% of the shares in all publicly traded companies worldwide, making it the largest investor on the planet. In total, the fund holds stakes in approximately 7,100 companies around the world.

On August 12, Norges Bank Investment Management reported a record profit of 1.75 trillion Norwegian kroner ($184.3 billion) for the first half of the year, driven by a rally in Asian tech stocks. The total return for the six-month period was 9.44%; thanks to strong growth in the second quarter, the fund was able to fully recoup its losses from the beginning of the year.

According to the report, investments in stocks accounted for 72.1% of the fund’s asset value at the end of the first half of the year. More than half of this portion of the portfolio is allocated to the U.S. market. In addition, the fund invests in fixed-income securities (25.8%), real estate (1.6%), and renewable energy infrastructure (0.5%).

SpaceX shares surged sharply following its record-breaking IPO on June 12 and continued to rise for several days. However, a pullback followed as investors questioned whether the company’s valuation—77 times its expected revenue—was justified, Reuters explains. On Monday, August 10, SpaceX shares rose 4% and closed above the offering price of $135 for the first time since mid-July. However, the stock failed to hold onto these gains: by August 11, it had slipped back below that level, ending the main trading session down 3.9%.

Meanwhile, Wall Street’s consensus rating for SpaceX stock is “Outperform,” which is equivalent to a buy recommendation. Thirty out of 40 analysts advise increasing holdings in the company. Three recommend selling these shares.

This article was AI-translated and verified by a human editor