Ontario Teachers' Pension Plan posted a 9.5% net return for the first half of 2026, powered by a venture portfolio that turned a $300 million bet on SpaceX into a stake worth close to $8.7 billion. The pension fund also reported $26.6 billion in net investment income for the six months ended June 30, more than four times the $6.0 billion earned in the same period last year.
The SpaceX windfall
Teachers invested about $300 million in SpaceX in 2019, when the company was valued near $33.3 billion. That bet paid off spectacularly when SpaceX went public in June, pricing shares at US$135 and raising US$75 billion in the largest U.S. IPO on record. The offering valued the company at roughly US$1.77 trillion.
By June 30, Teachers' stake was worth close to US$8.7 billion. But the shares didn't hold their ground. They fell sharply after the filing, losing close to 20% of their June 30 value within about six weeks. As of Monday trading, they're back up — 4% on the day and 23% over the past five days, trading around $138, above the $135 IPO price.
Governance concerns and a partial sale
CEO Jo Taylor acknowledged the fund is reassessing its exposure as lockup restrictions expire, and Teachers has already sold part of its position. Taylor raised concerns about SpaceX's governance structure, which gives Elon Musk near total control through special voting shares.
The lockup expiry is a key moment. With restrictions lifting, Teachers can decide how much of its stake to keep. The fund's willingness to trim suggests it's not fully comfortable with the arrangement, even as the shares recover.
Venture portfolio growth
Teachers' venture growth portfolio grew from $15.3 billion to $25.9 billion in the first half, a 69% jump, now representing 9% of total assets. The portfolio also includes stakes in AI companies Anthropic and Databricks, so SpaceX isn't the only big bet.
The growth reflects a broader push into private markets. The pension fund's 10-year annualized return stands at 7.8%, a figure that benefits from these early-stage investments.
What the numbers mean
The $26.6 billion in net investment income for the first half dwarfs the $6.0 billion from the same period in 2025. That's a fourfold increase, driven largely by the venture portfolio's performance.
But the SpaceX story is also a reminder of the risks. The sharp drop after the IPO, followed by a recovery, shows how volatile these positions can be. And the governance question — Musk's control through special voting shares — is a concern that won't go away.
As lockup restrictions expire, Teachers is reassessing its exposure. The fund has already sold part of its position, and Taylor's concerns about governance suggest more moves could come. The next few months will show how the pension plan balances its biggest venture win against its worries about control.
