Some Musk-related stocks surged 500% after Trump's election...Investors cheer returns

Thanks to the close relationship between Trump and Tesla CEO Elon Musk, Musk-related stocks have been making record returns on the stock market since last month's U.S. presidential election, Bloomberg reported.

Destiny Tech 100, a closed fund, typically invests in unlisted unicorn companies, and more than a third of its holdings consist of shares in SpaceX, an unlisted space company led by Musk.

The stock price of the fund, which is traded on the U.S. stock market, has risen by 525.88% over the past month from the 6th of last month to the 12th.

Since Trump's election was confirmed, it has been thanks to a large influx of funds from individual investors to indirectly invest in SpaceX, which is expected to benefit from easing government regulations, Bloomberg said.

On the 19th of last month, Trump also attended the 6th Earth orbit test flight site of SpaceX's moon and Mars exploration spacecraft Starship, raising investors' expectations.

"The election has been a big catalyst for Trump derivatives," said strategists specializing in exchange-traded funds (ETF) on Wall Street. "Investors have flocked to funds related to Musk, the top formula for Trump's victory."Some traditional equity funds, such as

{Barron Partners Fund', have also become winners of the presidential election, Bloomberg said.

The fund, with Tesla shares accounting for 40% of its holdings and SpaceX accounting for 10% of its holdings, has had negative returns until just before the election this year and is now on a year-to-date return of nearly 40%.

Tesla investor Cathie Wood's Arc Innovation ETF, dubbed the "Money Tree Sister" in South Korea, also posted negative returns through October this year, before soaring returns of more than 25% after the election.

Wood's other fund, "ARK Next Generation Internet ETF," which invests in Tesla, Bitcoin and digital asset companies, is heading for a return of over 50% this year.

However, since some stocks with big gains often trade at a huge premium to their underlying assets, chasing buybacks by retail investors could be risky, Bloomberg warned.