Equity Research · Current Holding
Destiny Tech100
DXYZ · NASDAQ · Closed-End Fund · Private Technology
A liquid way to own a basket of the most important private technology companies — bought where the discount does the work.
Quan Pham · M’Squared Capital Research · August 2026
What the market is missing
A closed-end fund is two things at once: the portfolio it holds, and the price the market puts on that portfolio. Most people look only at the first. The return here can come from the second — the price-to-NAV discount narrowing — independent of what the underlying companies do next.
Why I own it
I added Destiny Tech100 because a single listed line gives me diversified exposure to late-stage private technology that a proprietary book cannot otherwise reach. I am buying a portfolio of names I want at a price that already embeds a discount to their marked value, with the optionality that IPOs and up-rounds among the holdings both raise the marks and can compress that discount.
What has to happen
Portfolio companies have to keep progressing — IPOs, up-rounds, mark-ups — and the discount to NAV has to narrow rather than widen. New additions to the basket that the market likes would help both.
What would prove me wrong
The discount is a double-edged instrument. If it persists or widens, I can be right on the underlying companies and still lose money on the wrapper. Private marks are opaque and lag reality, so the NAV I am discounting is itself uncertain, and the fund is concentrated in a handful of large holdings whose fortunes drive the whole thing.
Valuation & exit
I hold DXYZ without a published target; the return is meant to come from the underlying portfolio and any narrowing of the price-to-NAV discount together. The structure risk — discount persistence and mark quality — is the honest caveat, and it is why this is a position, not a cornerstone.
Position
Long Equity
Initiated
New · Aug 2026
Sector
Closed-End Fund
Status
Current holding
Last updated
August 2026
This note is the opinion of M’Squared Capital and is provided for informational purposes only. It is not investment advice, nor an offer or solicitation to buy or sell any security. Price targets and entry and exit levels reflect the firm’s proprietary views and realized transactions; they are not forecasts of future results. The firm may hold, add to, reduce, or close any position at any time without notice. Past performance is not indicative of future results.