Baron Asset Fund on Space Exploration Technologies Corp.
Thesis
SpaceX became the Fund's dominant contributor after completing its public offering, and Baron remains extremely positive on its long-term prospects. The IPO raised more than $85 billion to accelerate growth across connectivity, launch, terrestrial and space infrastructure, and AI. Large compute-hosting agreements with Anthropic and Google, together with the acquisition of Cursor, expand SpaceX's exposure to AI applications and agentic systems, while the latest Starship test demonstrated progress in rapid and full reusability. Baron believes these developments can sustain long-term revenue and profit growth well beyond current levels and continues to treat SpaceX as an outsized holding while managing its size against diversification and mandate constraints.
“We believe these developments support sustained long-term revenue and profit growth well beyond current levels.”
Key risks
- Staggered post-IPO lockups restrict the Fund's ability to manage part of its SpaceX position
- The position must be managed against the Fund's diversification objectives and mid-cap growth mandate