Following SpaceX's (NASDAQ: SPCX) initial public offering in June 2026, a wave of retail investors flooded into the stock, drawn by its dual appeal as both a space exploration and artificial intelligence play. Institutional money has followed suit, with billionaire Israel "Izzy" Englander among the notable buyers. Englander's Millennium Management fund established a substantial position in SpaceX during the second quarter of 2026. What makes this particularly intriguing is that the hedge fund accumulated over 17.6 million shares before the company's first lockup expiration on August 6. Many market participants had viewed this upcoming unlock as a reason to stay on the sidelines. So does Englander possess insights that the average investor lacks?

Was this a calculated move or a misstep? The precise timing of Englander's purchases remains unclear. However, my assessment is that he likely began accumulating shares during the days immediately following the IPO, when the stock plunged more than 20%. Given widespread expectations that insider selling after the lockup would pressure the share price, establishing a SpaceX position in late June appeared questionable on the surface. Looking back, with the stock having declined by double-digit percentages since the end of the second quarter, Englander's purchase appears to be underwater. Could this billionaire be acting on non-public information about SpaceX? There is absolutely no evidence to suggest that. What he does possess, however, is a demonstrated talent for evaluating growth potential. His track record of successful investments suggests his analytical capabilities exceed those of typical market participants.

Englander's bullish thesis on SpaceX rests on solid foundations: the Starlink satellite internet business is expanding rapidly, and momentum in the AI sector continues to accelerate. If SpaceX founder Elon Musk's vision materializes 鈥?deploying AI applications on solar-powered satellites in space 鈥?the company's revenue could experience explosive growth (pun intended). Notably, Wall Street broadly validates Englander's investment thesis. As of the August 14 close, the consensus 12-month price target implies more than 60% upside from current levels, and approximately 33% upside relative to the end-of-second-quarter price.

One crucial consideration: Englander runs a hedge fund, and hedging is what these funds do. His SpaceX position comes with protective layers. During the second quarter, Millennium Management acquired roughly 17.6 million shares of SpaceX common stock, but also held 349,300 call options and 902,000 put options at quarter's end. Holding both calls and puts on the same stock simultaneously represents a classic hedging strategy. While most retail investors would not employ such tactics, this is standard practice for Englander. So does he know something the general public doesn't? The honest answer: yes.