Tech

Fidelity’s massive Contrafund has billions invested in private companies. Here’s how it values 23 names including SpaceX, WeWork, and ByteDance.

  • Fidelity’s Contrafund is an investor in some of the biggest private companies in the world.
  • The $110 billion fund holds stakes in unicorns like SpaceX and TikTok parent ByteDance.
  • Insider did a deep dive on how the fund values its stakes, and how it has changed since last year.
  • See more stories on Insider’s business page.

To Fidelity — the $3.8 trillion asset management behemoth — a couple billion dollars in private companies is not a huge part of the firm’s overall holdings, especially in its massive $110 billion Contrafund.

But those holdings, which make up 2% of the manager’s largest actively managed mutual fund, provide intimate details into how the investors value private companies and how quickly those valuations can change.

According to SEC filings and Fidelity’s website, the Contrafund ended January with 23 different private company investments worth anything from $5,351.98 a share (Zomato) to $0 a share (Intarcia Therapeutics). 

Below is a rundown of how different investments have changed in value since last summer, as well as how some investments dramatically changed in value in a single month, from the end of 2020 to the end of January.

The columns below can be sorted from highest to lowest.

 

Aurora Innovation, for instance, saw its valuation by Fidelity more than double from the start of the year to the end of January. The self-driving start-up has inked deals with Toyota and bought Uber’s self-driving unit at the end of 2020.

Deliveroo parent company Roofoods also doubled in worth since 2021’s start, according to Fidelity, as the UK-based food delivery company announced a $180 million funding round in January co-led by Fidelity that valued the company at $7 billion. The firm’s previous funding round from 2019 valued the company at $3.4 billion. Deliveroo is set to go public on the London Stock Exchange next month. 

WeWork’s valuation has slowly increased since last summer to the end of January, filings show, with the real estate company growing value by 18% to $8.40 a share. The company is still far off the lofty valuations Fidelity gave it in the summer of 2019, when it was valued at $52 a share in June 2019. 

Elon Musk’s SpaceX may be set to get a large valuation bump when Fidelity reviews its holdings again. The company raised an $850 million round in February that valued the company at nearly $420 a share — far off from the $269.99 that the rocket maker was worth, according to Fidelity, at the end of January.

Intarcia, a Boston-based biotech firm, has fallen on hard times, as the FDA has rejected a diabetic implant the company hoped would be a big revenue driver. Chinese investor Luxin Venture Capital Group wrote down its $30 million investment into the company to zero, according to STAT News, and Fidelity has done the same to the $28.6 million bet into made into the company in 2012. 

The Contrafund, run by Will Danoff, has returned more than 38.6% over the last 12 months ending in February, outperforming the S&P 500, which returned 31.3% over the same period. 

In a statement to Insider, Fidelity said “private investments are a small but important part of what we do at Fidelity.”

“Our size and strength of research allows us to evaluate many deals while investing in the few that we believe are exciting long-term opportunities for our shareholders,” the statement read. The manager boasts more than 130 analysts who cover thousands of stocks. 

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