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Scottish Mortgage Investment Trust’s share price has swung sharply: it almost quintupled in the five years to November 2021, fell nearly 60% over the next 18 months, and has since risen 150% to a reported all-time high. MoneyWeek says SpaceX has become a major holding after its valuation climbed, while manager Lawrence Burns says the trust expects to retain the shares for ten years.
Scottish Mortgage Investment Trust has experienced a sharp reversal in its share-price fortunes: after falling nearly 60% in 18 months, its shares have risen 150% to a reported all-time high, according to MoneyWeek. The report also highlights the trust’s substantial exposure to SpaceX, which now represents 15% of its portfolio after the managers reduced the holding from more than a quarter.
The report describes a sequence of unusually large moves in Scottish Mortgage’s share price. In the five years to November 2021, it almost quintupled. It then dropped nearly 60% over the following 18 months. Since that decline, the shares have climbed 150%, a gain MoneyWeek says put the trust at the top of the three-year performance table for global funds. The report does not provide the table’s underlying figures or the exact dates used for that comparison.
SpaceX is a central part of the account. Scottish Mortgage invested in the company in 2018, at a valuation of $31 billion, MoneyWeek reports. After what the article describes as a June initial public offering, SpaceX’s market value exceeded $2 trillion. The source does not specify the year of that IPO or provide details of the valuation calculation.
The trust has sold down some of its SpaceX holding as its value grew, reducing its share of the portfolio from more than 25% to 15%, according to the report. Lawrence Burns, who manages the trust alongside Tom Slater, said the managers do not intend to sell out and expect to hold the shares for ten years. That is a statement of the managers’ current intention, not a guarantee that the position will remain unchanged.
Why the SpaceX Stake Matters
The SpaceX position illustrates how a small number of high-growth private and listed companies can shape the fortunes and perceived risks of an investment trust. At 15% of the portfolio, the holding remains large enough for changes in SpaceX’s valuation to affect the trust’s overall value. The managers’ reported decision to trim the position, while retaining a substantial stake, shows that portfolio exposure can change even when they remain positive about a company’s long-term prospects.
For shareholders, the share-price history is also a reminder that strong periods of performance can be followed by steep declines. The reported 150% recovery does not erase the earlier fall for every investor: the outcome depends on when shares were bought and sold. Nor does a recent high establish what returns will be from here. The report describes past performance, not a forecast.
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MoneyWeek’s account traces the share-price moves from the five-year period ending in November 2021 through the subsequent decline and recovery. It says the price almost quintupled in that initial period, fell nearly 60% across the next 18 months, and then gained 150% from the low. The source does not give exact start and end dates for the later rise, so the sequence should not be read as a precise current-period return.
The performance comparison in the report is also time-dependent. MoneyWeek says Scottish Mortgage was at the top of the global-funds performance table over three years at the time of publication. It does not identify the comparison date, the other funds included, or whether the measure refers to share-price performance or another return calculation. Those details matter when comparing a trust with other funds or judging an individual investor’s result.
“The shares “almost quintupled” in the five years to November 2021.”
— MoneyWeek
Dates and Valuation Details Missing
The account does not state its publication date, identify the year of SpaceX’s June IPO, or provide the exact dates behind the 150% rebound and the three-year fund comparison. It also does not set out how SpaceX’s reported market value of more than $2 trillion was calculated. The figures are therefore best treated as claims reported by MoneyWeek, rather than as independently verified measurements in this article.
It is also unclear from the supplied material how much the SpaceX holding has contributed to the trust’s share-price recovery, or how the reported share-price changes compare with changes in the trust’s underlying portfolio value. The article does not give current net asset value data, the trust’s discount or premium to that value, or a full breakdown of holdings. Those measures would be needed to assess the trust beyond the headline share-price movements.
The next relevant updates would be Scottish Mortgage’s published portfolio disclosures and any further comments from Burns and Slater on SpaceX. Those could show whether the holding’s percentage of the portfolio has changed, and whether the managers still intend to retain it over the stated ten-year horizon. The supplied report does not identify a date for a future announcement or a scheduled company update.
Shareholders and prospective investors can also track the trust’s share price alongside its net asset value and portfolio disclosures. The historic rise and fall do not determine future performance, and the source provides no forecast for either Scottish Mortgage or SpaceX.
Key Questions
MoneyWeek says the shares almost quintupled in the five years to November 2021, fell nearly 60% over the next 18 months, and then rose 150% to a reported all-time high. The source does not provide exact dates for the recovery period.
How large is Scottish Mortgage’s SpaceX holding?
According to MoneyWeek, SpaceX represents 15% of the portfolio, down from more than 25% after the trust sold part of its position.
When did Scottish Mortgage invest in SpaceX?
The report says the trust invested in 2018, when SpaceX was valued at $31 billion.
Do the managers plan to sell the remaining SpaceX shares?
Co-manager Lawrence Burns told MoneyWeek that the trust had no intention of selling out and expected to hold the shares for ten years. That describes the managers’ stated intention, not a fixed commitment.
Does the reported recovery predict future returns?
No. The figures describe past share-price movements. They do not establish future performance, and the supplied report does not offer a forecast.
Source: rss
