Scottish Mortgage Investment Trust shares are failing to track the rising value of its underlying assets. A significant discount emerged following the successful IPO of SpaceX, one of the trust's largest holdings.
The trust’s shares traded closely to its net asset value (NAV) before the public offering. This discount reached nearly 10% by June 19.
This gap suggests the market has not fully priced in the increased value of the SpaceX stake. Investors can currently purchase the trust's growth portfolio at a reduced price relative to its asset value. The trust is actively buying back its own shares to address the discrepancy.