Value Investing Died a Little Today

u/Virtual_Seaweed7130 · Reddit — r/ValueInvesting · March 25, 2026 at 00:57 · ⬆ 20 pts · 💬 11 comments  | View on Reddit ↗
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Summary

  • The author highlights a massive pricing anomaly in $VCX, a closed-end fund holding private AI companies, which is up over 1000% in a week.
  • The thesis is that VCX is trading at an absurd ~24x premium to its Net Asset Value (NAV), implying impossible valuations for its underlying holdings (e.g., OpenAI at $16.8 Trillion).
  • Quality assessment: Well-researched DD. The author provides concrete math on shares outstanding, NAV, and implied look-through valuations of the private holdings to prove the overvaluation.
Score 20
Comments 11
Upvote % 75%
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Trade Ideas
u/Virtual_Seaweed7130 Reddit r/ValueInvesting
VCX has a market cap of $10.7B compared to a self-reported NAV of just $437M. This 24x NAV premium implies mathematically absurd valuations for its private holdings, such as valuing OpenAI at $16.82 Trillion. The stock is a compelling short target expected to drop 80%+ as the price inevitably reverts closer to its actual NAV. Irrational retail momentum can persist, and shares are currently difficult to find to short, causing near-term pain.
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This Reddit post, published March 25, 2026, features u/Virtual_Seaweed7130 discussing VCX. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Virtual_Seaweed7130  · Tickers: VCX