Watchlist: PWRL

DDD is revisiting a trade that has worked for him before—buying access to private companies when the publicly traded wrapper around them gets cheap.

The Stock Trader Network chief strategist added Powerlaw Corp. (PWRL) to his long-term portfolio around $12 Wednesday, months after trading Destiny Tech100 (DXYZ), another vehicle built around private-market holdings.

DDD’s thesis: the stock is currently trading at a “sharp” discount to net asset value. PWRL last reported net asset value of $16.21 a share as of June 30.

SpaceX (SPCX), which accounted for 27.04% of the portfolio at quarter-end, has fallen since then. Even after accounting for that decline and possible weakness elsewhere, DDD estimates the fund’s current NAV could be closer to $14 to $15.

Beyond SpaceX, PWRL owns stakes in OpenAI, Kalshi, Kraken, Stripe, Databricks and Perplexity, among other private companies.

“Everybody’s forgotten about this,” DDD said in the STN Think Tank this morning. “It doesn’t mean these companies that they have are irrelevant. Just this fund itself has become irrelevant.”

There are catches. The fund charges a 2.5% management fee, its NAV is updated quarterly and the shares are thinly traded, making entries and exits difficult.

So DDD sized accordingly. “I think this is a sit on it and wait type of trade for me here,” he said. “I didn’t go crazy. I put a small position on here.”

Trades from DDD can be followed in the Trade tab inside the Stock Trader Network Think Tank room. Not financial advice.