Investor Ron Baron Launches New Funds to Invest in Elon Musk-Linked Companies

Investor Ron Baron, known for his early backing of electric vehicle company Tesla Inc, is now launching new funds to give investors exposure to private companies connected to Elon Musk. Baron, who has invested in companies like SpaceX and xAI, is expanding his investment portfolio to include these Musk-linked companies.

Baron Capital Management has launched new funds focused on xAI and SpaceX, giving investors a way to invest more heavily in these innovative companies. Unlike other investment vehicles, Baron’s funds come with lower fees, aiming to attract investors looking to capitalize on the success of Musk’s ventures.

With high outflows from its mutual funds in recent years, Baron Capital is looking to increase its assets under management through these new investment vehicles. The funds, BaronX Cayman and BaronxAI, charge a management fee of around 1% annually and lock investors’ money up for eight years.

Baron’s investment in SpaceX has proven to be lucrative, with the space company recently being valued at $210 billion. Baron believes that SpaceX has the potential to surpass Tesla in value in the coming years, with a projected valuation of $500 billion to $600 billion by 2030.

Investors looking to get in on the action can explore options like mutual funds that own stakes in SpaceX, including the Fidelity Blue Chip Growth Fund and Baron mutual funds. With Tesla making up a significant portion of Baron’s assets, his successful track record in predicting market trends bodes well for investors looking to capitalize on the growth of Musk-linked companies.