Why Westend Capital’s Opted Out of the Space Exploration Technologies Corp. (SPCX) IPO

Why Westend Capital’s Opted Out of the Space Exploration Technologies Corp. (SPCX) IPO

Fri, September 4, 2026 at 5:22 PM GMT+3 3 min read

• SPCX -0.57%
• ^GSPC -0.48%

WestEnd Capital Management, an investment advisor, released its Q2 2026 investor letter. The letter can be downloaded here. WestEnd Capital Management's Core Strategy achieved a 16.3% net return in the quarter, surpassing the S&P 500's 15.0%. This performance stemmed from strong earnings generators and upward earnings revisions, showcasing U.S. companies' efficiency in converting sales into profits. S&P 500 net profit margins reached a decade-high of 14.8% in Q1 and are expected to remain above 14% in Q2 despite challenges like higher interest rates and geopolitical uncertainty. Technology remains a key focus in WestEnd's portfolio, along with investments in infrastructure, demographic shifts, financial innovation, and selective consumer opportunities. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, WestEnd Capital Management highlighted Space Exploration Technologies Corp. (NASDAQ:SPCX). Space Exploration Technologies Corp. (NASDAQ:SPCX) is a US-based aerospace company specializing in advanced rockets and spacecraft, operating through Space, Connectivity, and AI segments. On September 03, 2026, Space Exploration Technologies Corp. (NASDAQ:SPCX) closed at $149.74 per share. Over the past month, Space Exploration Technologies Corp. (NASDAQ:SPCX) gained 12.60%. Space Exploration Technologies Corp. (NASDAQ:SPCX) has a market capitalization of $2.03 trillion.

WestEnd Capital Management stated the following regarding Space Exploration Technologies Corp. (NASDAQ:SPCX) in its Q2 2026 investor letter:

"One of the more interesting investment decisions we made during the quarter involved a company we greatly admire, but ultimately chose not to own: Space Exploration Technologies Corp. (NASDAQ:SPCX).

There is little debate that SpaceX has built one of the world's most remarkable businesses. Starlink has become the global leader in satellite internet connectivity, the company's launch operations continue to redefine commercial space transportation, and its growing investments in artificial intelligence and digital infrastructure present additional long-term opportunities. By almost any measure, SpaceX is an extraordinary company.

Our decision not to participate in the IPO was not a reflection of the business itself. Rather, it reflected our assessment of valuation and expected future returns..." (Click here to read the full text)

Space Exploration Technologies Corp. (NASDAQ:SPCX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 119 hedge fund portfolios held Space Exploration Technologies Corp. (NASDAQ:SPCX) at the end of the second quarter. While we acknowledge the potential of Space Exploration Technologies Corp. (NASDAQ:SPCX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In a prior article, we highlighted Space Exploration Technologies Corp.'s (NASDAQ:SPCX) strengthening AI advancements, though noting the significant capital expenditure risks. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.