Scottish Mortgage: Broker warns on SpaceX concentration

Canaccord Genuity has initiated coverage of Scottish Mortgage Investment Trust with a hold rating, arguing that the fund’s exposure to SpaceX has become too concentrated. SpaceX now represents 28% of net assets after accounting for 8% leverage, and Canaccord says the position creates significant volatility risk despite strong recent performance. The trust’s shares trade at a 6% discount to NAV, which the broker views as broadly fair, given the risks tied to unlisted holdings and valuation uncertainty. Scottish Mortgage has delivered strong returns over the past year, but much of the gain is concentrated in SpaceX, with the broker noting that almost all of the valuation uplift remains unrealized. The report also highlights ongoing buybacks, low debt costs, and improved disclosure, but the headline market takeaway is that the fund’s private-asset concentration could cap further upside.