With a stake exceeding 20%, billionaire Ron Baron makes a major investment in SpaceX

2026-03-04 00:33:02

Abstract generation in progress

According to Bloomberg Industry Research, billionaire Ron Baron’s Baron First Principles ETF (RONB) has significantly increased its allocation to SpaceX, Elon Musk’s company, to 22%, setting a record for private equity holdings within an ETF. This ETF could become the next “star” in the actively managed ETF space. The fund also invests in Musk’s AI company xAI and Tesla (TSLA.US), which manufactures cars and humanoid robots, making it the ETF with the largest exposure to this highly innovative and successful entrepreneur’s ventures.

Reports indicate that SpaceX is preparing for an IPO in 2026, with the offering potentially setting a record and valuing the company at up to $1.5 trillion.

Recent data shows that xAI’s valuation has reached $230 billion, nearly doubling in less than a year. Investors in xAI include Nvidia and Cisco, which are also strategic partners. According to PM Insights, xAI’s revenue is projected to reach $500 million in 2025, a 400% increase year-over-year. Given this performance, Tesla’s stock success, and the massive attention leading up to SpaceX’s IPO, investors are naturally interested in early opportunities to invest in xAI and its potential IPO.

Typically, ETFs are limited to holding no more than 15% of “low liquidity” securities, but for SpaceX, Baron considers it a relatively liquid stock due to its active trading in the secondary market.

XAI1.41%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.