As featured in the Australian Financial Review, we at Minotaur Capital shared our perspective on SpaceX's turbulent Nasdaq 100 debut, drawing on our hedge fund strategies and global equities expertise. Our co-founder Thomas Rice revealed we had already built a short position, initiating our bet at US$170 based on a sceptical view of the rocket maker's stretched valuation, netting a paper return of around 12 per cent as the stock drifted back towards its US$135 IPO price.
As Australian fund managers running a global equities long/short fund, we approach opportunities like this through rigorous equity research and disciplined portfolio management. Thomas highlighted the extraordinary uncertainty embedded in SpaceX's price, noting Morgan Stanley's wide range between its US$600 bull case and US$75 bear case.
"An eight times difference between bull and bear within a single analyst's model tells you everything about how sensitive this is to assumptions," Rice said. "We're short, simply because of its valuation, but remain open-minded."
At Minotaur Capital, our investment management philosophy blends AI-driven analysis with fundamental global equities research, keeping us open-minded even when taking a contrarian stance. We remain focused on identifying mispriced opportunities across global markets while staying humble about the unknowns.
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