Iiro

What are some reasons that stocks trade at a premium to NAV? 1. Access - Public market investors don't have a path into leading private companies. 2. Price discovery. Private marks take into account demand from only private markets, while a publicly listed vehicle takes into account demand of the public markets. Private companies are typically valued only at their last funding round, but a company can grow their business between funding rounds. Investors in a publicly traded vehicle holding those companies price in new information in real time. When the market believes a portfolio company's value has changed from the last round's valuation, that view can show up in the share price before it shows up in NAV. 3. Compounding. The underlying equity owned by each share isn't static. Every issuance above NAV adds cash which is used to make more investments, increasing equity per share for existing holders. The market may price both today's portfolio and the per-share value accretion that disciplined issuance generates going forward. 4. Liquidity - Public market liquidity for private assets. 5. Cost - Typical VC funds and SPVs charge 20% carry. Closed-end funds do not charge additional performance fees. Read on to see how the math actually works.

$BOT is still trading at 4x NAV. With a $2,000,000,000 effective ATM. Even after the 21% drop. So now it’s ~$600M MC, off $146M in private assets. Then off those assets, they own ~$37M of Figure. Which you’re essentially buying at $160B valuations while the leading humanoid maker in Unitree is IPOing at $6B. So just because a $146m private fund went public doesn’t mean there should be a multi-billion dollar retail wealth transfer? Maybe the fund had good intentions? But idk after the $2B equity financing facility, that move just seems predatory when there’s already a valuation NAV disconnect.

Sold my $HACK position entirely and changed it to other for now. Hopping in before earnings report on late february. My ideology is to see whether it gets attraction. Then hop back in, ideally in the next week. Betting on other companies reports to maximize efficiency on markets.