Brisbane-based Hyperion Asset Management is a money manager overseeing $12.5 billion in assets. The firm, a long-time significant local backer of electric carmaker Tesla, has deepened its commitment to Elon Musk’s ventures by acquiring a stake in SpaceX. Hyperion informed clients Monday that its $3.8 billion Global Growth Fund now includes SpaceX, with a middle-ranked portfolio weighting. This strategic move aims to diversify the fund into new industries, encompassing space launch, satellite broadband, and mobile telecommunications, securing exposure to a frontier AI model, Grok, via a SpaceX subsidiary, xAI.
Hyperion explained this addition broadens its direct exposure to frontier large language models, previously limited to Alphabet. The firm believes the SpaceX investment will “reduce fundamental portfolio risk and enhance the long-term potential returns of the portfolio.” The timing appears beneficial, as SpaceX shares surged nearly 50 per cent following their recent float. Despite easing 8 per cent since, they remain 37 per cent above their offer price at US$185, an uplift expected to provide a welcome boost to Hyperion’s Global Growth Fund after recent market challenges.
The fund recently navigated a challenging period, dubbed the “SaaSpocolypse,” which Hyperion described as its worst underperformance in three decades. Triggered by concerns over AI’s potential to disrupt software business models, the fund proactively slashed its exposure to poorly performing software stocks in February. This decision improved performance, with the Global Growth Fund returning a strong 9.8 per cent in May and up 16.1 per cent over the past three months, outperforming its benchmark, the MSCI World Accumulation Index, by nearly 10 per cent. Hyperion further refined its portfolio by exiting its position in US accounting software company Intuit, a significant drag on past returns.
