Canaccord Genuity warns Scottish Mortgage's heavy SpaceX exposure poses risk despite strong gains.

Canaccord Genuity initiated coverage of Scottish Mortgage Investment Trust with a 'hold' rating, highlighting that SpaceX now makes up 28% of its net assets, creating concentration risk. The trust's shares trade at a 6% discount to net asset value, which Canaccord views as reasonable given the volatility from private holdings like SpaceX. Despite strong performance with a 38% share price rise over the year, most gains from SpaceX remain unrealized. The analyst suggests investors consider trimming positions if concerned about the large SpaceX weighting. The trust also improved disclosure on private investments and maintains low debt costs with moderate gearing.