Scottish Mortgage Investment Trust Recovers Losses, Nears All-Time Highs
The trust's recovery is largely attributed to strong performance in its private portfolio, particularly SpaceX, with other promising ventures like Anthropic also contributing to its renewed success.
Scottish Mortgage Investment Trust has completed a significant recovery following a turbulent post-pandemic period, with its shares now trading near all-time highs. This resurgence, which began in May, marks a turnaround after nearly five years of underperformance.
Over the year to July 2, 2026, the trust reported net asset value (NAV) and share price total returns of 39.2% and 45.3%, respectively. This significantly outpaced the global market's return of 29.1% during the same period, offering a welcome performance for its investors.
The SpaceX Effect
The trust's recovery has been significantly boosted by developments in its private portfolio, with SpaceX playing a pivotal role. Baillie Gifford, the trust's manager, first invested in SpaceX in December 2018 when the company was valued at $31 billion. By June 12, 2026, SpaceX had completed the largest IPO in history, raising $75 billion and achieving a valuation of $1.77 trillion.
Prior to its listing, SpaceX's substantial growth led Scottish Mortgage's exposure to private companies to exceed its self-imposed 30% limit, necessitating shareholder approval for a temporary increase in the unlisted budget. The anticipation surrounding SpaceX's IPO dramatically improved investor sentiment towards Scottish Mortgage, with its shares moving from years of a double-digit discount to a premium of approximately 8% to NAV by late May.
However, since its listing, SpaceX's share price has seen some volatility, trading down from an initial peak. This cooling sentiment contributed to a 7% drop in Scottish Mortgage's share price in June, and the trust shifted back to a discount of 10%, which has since narrowed to 7%.
SpaceX's satellite division, Starlink, has been a key revenue driver, surpassing 10 million subscribers across 155 countries by early 2026 and generating $11.4 billion of the company's $18.7 billion total revenues in 2025. Other divisions, including launch and AI, are not yet profitable, indicating that a significant portion of SpaceX's valuation remains dependent on future potential rather than current earnings. Lock-up restrictions are set to release shares in tranches through December 2026, suggesting continued volatility.
Despite the post-listing fluctuations, Scottish Mortgage's early backing of SpaceX at a $31 billion valuation and its commitment through challenging periods has resulted in one of the era's most remarkable private market returns.
Beyond SpaceX
Scottish Mortgage holds stakes in over half of the world's ten most valuable private companies, with a compelling pipeline of future opportunities. Anthropic, an artificial intelligence company, first backed by the trust in August 2025 at a $183 billion valuation, is developing AI models for the workplace and has seen its revenues grow rapidly. By May 2026, its annualized revenues reached $47 billion, and the company has confidentially filed for an IPO at a pre-IPO valuation nearing $1 trillion.
Fintech provider Revolut is another significant holding. Having secured its UK banking license, Revolut now serves over 70 million customers globally. The trust valued Revolut at around $45 billion at the time of purchase; it is now valued at approximately $115 billion.
Smaller, high-growth potential companies also feature in the portfolio, such as Enveda, a biotechnology firm utilizing AI to discover new medicines. Founded in 2019 and valued at around $1 billion at the end of 2025, Enveda has developed 12 drug candidates currently in development.
Not all private investments have yielded positive results. Northvolt, an investment in European battery capacity, was written down to zero due to insurmountable scaling challenges. The trust's managers have acknowledged these risks and refined their selection process for private companies.
Future Prospects
Despite potential investor hesitation, Scottish Mortgage retains significant potential. While SpaceX's success has been substantial, its performance should not overshadow other promising ventures within the trust's private portfolio. Companies like Anthropic and potentially smaller investments such as Enveda offer continued growth prospects.
Trading at a 7% discount and with an ongoing charge of 0.31%, Scottish Mortgage presents a compelling opportunity for long-term investors seeking differentiated access to companies poised to define the next decade. However, the inherent risks associated with high-conviction, concentrated portfolios, amplified by market volatility and geopolitical factors, remain a critical consideration for potential investors.