Book profits exceed $10 billion! This little-known hedge fund may become the biggest winner of the SpaceX IPO

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An obscure New York hedge fund is standing at the threshold of reaping massive returns, thanks to an early bet made in 2019.

According to people familiar with the matter, Darsana Capital Partners’ holdings in SpaceX are poised to deliver over $10 billion in paper profits, provided Elon Musk’s rocket company completes its IPO next month at a market-expected valuation of around $1.5 trillion or higher.

The scale of this potential return puts Darsana among the top beneficiaries of this listing, far surpassing many technology-focused venture capital firms. SpaceX’s soaring valuation has made this investment account for nearly 60% of Darsana’s assets under management, highlighting the fund’s high concentration in a single position.

For investors, Darsana’s case offers a rare perspective—how a diversified hedge fund, known for holdings in traditional sectors such as consumer and dining stocks, became deeply tied to the world’s highest-valued private tech company through a chance research encounter.

From Satellite Research to SpaceX Shareholder: A Chance Entry

Darsana’s connection to SpaceX originated from an unintentional research effort.

According to informed sources, Darsana partner Dan Irom was researching listed satellite companies, during which he came into contact with the then-unlisted SpaceX. Through this process, Darsana gained deep insight into SpaceX, which then invited them to invest. In 2019, Darsana made its first investment in SpaceX when its valuation was about $30 billion. Since then, Darsana has repeatedly added to its position and has never sold any SpaceX shares.

Darsana was founded by Anand Desai in 2014 with an initial management scale of about $1.4 billion. Desai previously worked nearly a decade at Eton Park Capital Management, founded by Eric Mindich. The fund doesn’t focus on any particular sector or industry and prefers to hold investments for years. Its disclosed holdings include consumer brands with no technological relevance, such as Dick’s Sporting Goods and Wingstop. As of March 31 this year, Darsana disclosed positions in just 13 listed companies, with its holdings highly concentrated.

SpaceX Position Swells to $8.5 Billion, Nearly 60% of AUM

As SpaceX’s valuation climbed, this investment’s weight on Darsana’s balance sheet changed dramatically.

According to people familiar with the matter, Darsana currently manages about $15 billion in assets, of which the SpaceX position accounts for about $8.5 billion. By contrast, as of March 31, the fund’s disclosed listed equities totaled just about $4.7 billion, making SpaceX—an unlisted asset—far larger than its public market portfolio.

Sources say that several billion dollars of these paper profits were added since SpaceX’s financing round last December (when its valuation was about $800 billion). If the IPO lands at a $1.5 trillion or higher valuation, Darsana’s total paper profits will exceed $10 billion.

Darsana’s investor base is weighty as well. Regulatory filings reviewed by fund data tracker Old Well Labs show that Yale University and the University of Pennsylvania’s endowment funds have both been Darsana clients. Additionally, Morgan Stanley Wealth Management clients received about $100 million in Darsana’s SpaceX-focused investment vehicle shares.

Associated Investments Add Up, Diverse Holding Sources

Darsana’s SpaceX holdings aren’t just from direct investments; some shares come from investments in SpaceX ecosystem companies.

Sources say Darsana invested in several companies that later partnered with SpaceX, earning it additional shares. After Elon Musk privatized X (formerly Twitter) and before its merger with xAI, Darsana participated in X’s venture and debt financing. Earlier this year, X merged with SpaceX in an all-stock transaction.

As of March 31, Darsana’s largest disclosed holding was EchoStar—a satellite and telecom company that signed an agreement with SpaceX, offering parts of its wireless spectrum to SpaceX for $17 billion in cash and stock.

Darsana is also active in the private market. The fund previously held pre-IPO DoorDash shares, as well as stakes in the e-cigarette maker Juul Labs. In December, Darsana led a $300 million financing round for supersonic jet startup Boom Supersonic, which recently extended its business to providing natural gas turbines for AI data centers.

D1 Capital Also Sits on Huge Paper Profits

Darsana isn’t the only hedge fund poised for a windfall from this SpaceX IPO.

According to other sources, D1 Capital Partners, founded by Daniel Sundheim, also holds a large SpaceX stake. Over the years, it invested around $600 million, and currently sits on about $9 billion in paper profits—based on SpaceX’s financing valuation from late last year. If the IPO goes smoothly, its actual returns could rise considerably.

The cases of both funds show that during SpaceX’s lengthy private phase, a handful of forward-looking and bold institutional investors will reap stellar returns in what may become one of the largest IPOs ever, commensurate with the risks they took.

Risk Warning and DisclaimerThe market is risky, invest with caution. This article does not constitute personal investment advice and does not take into account any individual user’s specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Investing accordingly is at your own risk. ```