(Bloomberg) -- A Fidelity Investments mutual fund increased the value of its equity stake in Elon Musk’s X by more than 32% in October, its largest monthly increase since making the investment in late 2022.
Fidelity’s Blue Chip Growth Fund valued its stake in X Holdings Corp., the parent of the social network, at $5.53 million at the end of October, up from $4.19 million in September, according to the fund’s monthly report. The fund originally invested about $19.7 million in October 2022.
Despite the increase, Fidelity’s fund has marked down X’s valuation by nearly 72% since Musk bought the company for $44 billion in October 2022. A Fidelity spokesperson declined to comment on how the valuation is calculated.
It’s not clear what led to the increase, and Musk’s X has struggled to retain advertisers since he took over. The new valuation was also determined before the recent US presidential election. Since Donald Trump’s victory, Musk has emerged as a key adviser to the incoming president, including taking on an unofficial role to help cut federal spending.
Several X competitors have also benefited from the election results, though, as people have left X to join rivals like Bluesky and Meta Platforms Inc.’s Threads.
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