Exec summary of Capitalist Exploits’ overview of Softbank’s Vision fund

This is a summary of Capitalist Exploits’ overview of Softbank’s Vision Fund published on 6 June 2019.

Executive summary

• Chris from Capitalist Exploits argues that the Vision fund (1) is the largest holder of the profitless sector, (2) operates on a whim of a single person, (3) supports elevated valuations with accounting
• Chris views Softbank could take down the profitless sector as it’s leveraging up with the plans to borrow $4bn more on top of $143bn existing debt that’s larger than the current market cap
• Banks are also viewing unicorn valuations as unreasonable as evidenced by Morgan Stanley shorting Uber