It's been about three weeks since RVI (Robinhood Ventures Fund) listed. It was second in the list of pure play venture capital tickers (DXYZ being the first one and VCX followed last week and has been making the waves, I was an early investor in the Fundrise Innovation Fund).
I got in at the NAV of $18 and for VCX and it goes beyond saying how good that portfolio is at that price. Make what you will of the current price and what a good entry point now might be. The success of VCX made be double down on the AI trade (assuming $30 six months from now and not the current $250, I will be more than happy and set myself for pleasant surprises). I did get into DXYZ since I discovered their stealth Anthropic buy via the SEC filings which is not very well advertised (It is 22% of the fund now, even more than VCX and convinced me to get in). I had not been able to make much sense of the RVI portfolio in comparison but took a small (12k) position the day it crossed its NAV of $25. I have been watching the price action and I have a bullish case for RVI based these facts:
Borrow fee rate of 78% and zero shortable shares on IBKR. I wonder if this has something to do with the fact that someone went short on RVI on the day of its listing. It was pretty clear and I talked about it here:
https://www.reddit.com/r/FundRise/comments/1rn8swn/about_that_rvi_thing_and_what_we_need_to_take/
Charts in one of the comments.
The stock has rallied about 20% since I got in (26 cost basis, which I was iffy on initially). So the shorts should be feeling some pain now and the fee is getting in the squeeze territory. Then it occurred to me that the greatest Rocket fuel this stock has is the Robinhood app. Imagine all the notifications the users might get especially on the day it rallied 13% (I don't have Robinhood but I don't doubt that would use this tactic). So there is potential of generating some interest which may end up in a rally that triggers a squeeze. This is a medium conviction play for me. I am not taking my profits (which I was planning on after getting up 2k , I am at 2.5k now) nor increasing my position and letting it ride (will use limit GTCs).
Let's see what happens. This is obviously less of a fundamentals driven analysis and more market mechanics driven. Thought I will leave it out here to keep my thought process honest. Feel free to call me out when I am wrong.
Not financial advice, do your own due diligence!
Posted by Fit_Equal6932