Billionaire Izzy Englander Bought SpaceX Before the Lockup Expiration. Does He Know Something Most Investors Don't?

Retail investors flocked to Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, after its initial public offering (IPO) in June. However, some institutional investors also bought the artificial intelligence and space stock. Billionaire Israel "Izzy" Englander was one of them.

Englander's Millennium Management loaded up on SpaceX in the second quarter of 2026. Notably, the hedge fund purchased over 17.6 million shares before SpaceX's first lockup expiration on Aug. 6. Many viewed this lockup expiration as a reason to avoid the stock, at least temporarily. Does Englander know something that most investors don't?

Israel "Izzy" Englander. Image source: Getty Images.

A brilliant move -- or a boneheaded one?

We don't know exactly when Englander bought shares of SpaceX. However, I'd wager that he began buying days after the space technology company's record-setting IPO when its stock plunged more than 20%.

Initiating a stake in SpaceX in late June might seem like a questionable decision, given the downward pressure on the stock that many expected when insiders began selling their shares. In retrospect, Englander's decision to buy SpaceX could appear to be a poor one, with shares down a double-digit percentage since the end of Q2.

Does the billionaire have inside information about SpaceX that isn't publicly available? There's absolutely no reason to think so. He is, though, an astute evaluator of businesses' growth prospects. You could argue that his track record of success reflects that he indeed does have greater knowledge than the average investor.

Englander has good reason to view SpaceX's growth opportunities in a favorable light. The company's Starlink satellite internet services business is booming. The momentum in its artificial intelligence (AI) segment is accelerating. If SpaceX founder Elon Musk achieves his vision of hosting AI apps on satellites in space where free solar power is abundant, SpaceX's revenue could skyrocket (no pun intended).

For what it's worth, Wall Street seems to think that Englander's investment in SpaceX was smart. The average 12-month price target for the stock reflects an upside of more than 60% above SpaceX's share price as of the market close on Aug. 14 and roughly 33% above the stock's price at the end of Q2.

Hedging his bet

I think it's also important to remember that Englander runs a hedge fund -- and hedge funds... hedge. That's exactly what he's doing with his bet on SpaceX.

Yes, Millennium Management bought around 17.6 million shares of SpaceX in Q2. But it also held call options on 349,300 shares and put options on 902,000 shares at the end of the quarter. Buying both calls and puts on a stock is a classic hedging strategy.

This kind of hedging is something that many investors don't attempt. However, Englander does it all the time. Does he know something that most investors don't? The honest answer is "yes."

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.