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While the surge in blank-check companies worries some investors, Mark Yusko of Morgan Creek Capital Management sees a good entry point for an actively managed exchange-traded fund to sort through the frenzy and bet on innovation.
The Morgan Creek – Exos SPAC Originated ETF, which began trading this week, will own between 50 and 100 special purpose acquisition companies, Yusko, Morgan Creek’s chief executive officer and chief investment officer, said in a phone interview. About one-third of the SPACS held by the ETF won’t have announced a merger, he said, with the balance having already agreed to a business combination.
In 2020 there were close to 250 special purpose acquisition companies, or SPACS, which raised more than $83 billion, with an average size of $334 million, according to spacinsider.com. So far this year, the count is already at 75. Why all the excitement for SPACs?
Serial SPAC’er Chamath Palihapitiya invested in two companies going public via a SPAC in one day. This is on top of the six blank-check vehicles he helped raise in 2020.
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Morgan Creek and EXOS Launch SPAC Originated ETF
Actively managed SPXZ targets SPACs pre- and post-merger with an equal weight approach
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CHAPEL HILL, N.C., Jan. 26, 2021 /PRNewswire/ Chapel Hill, North Carolina-based asset manager Morgan Creek Capital Management and New York-based fintech company EXOS Financial today launched the Morgan Creek – Exos SPAC Originated ETF (ticker: SPXZ), an actively managed ETF with an investment strategy focused on Special Purpose Acquisition Companies, or SPACs, and the public companies born from them.
SPXZ seeks to provide investors with liquid, transparent, actively managed exposure to a portfolio of the innovative companies that go public via SPAC mergers. The fund expects to hold approximately two thirds of its capital in an equal dollar weighted portfolio of the largest companies to have completed SPAC mergers over the past three years, and approximately one third of its capital in
January 25, 2021
Special purpose acquisition company (SPACs) are still all the rage on Wall Street following a brisk 2020 of blank-check activity. Exchange traded funds issuers are tapping heavily into that trend, some via active management.
Mark Yusko’s Morgan Creek Capital Management and financial-technology company Exos Financial will roll out the
Morgan Creek-Exos SPAC Originated ETF (SPXZ) on Tuesday.
“Morgan Creek and Exos are the latest companies trying to make money from SPACs, which go public and then have up to two years to merge with a company. Upon completion of a deal, that company gets the SPAC’s place on a stock exchange, allowing it to access everyday investors,” reports Amrith Ramkumar for the
Could giant SPACs be next?
While many deemed 2020 the year of SPAC, short for special purpose acquisition company, 2021 may well make last year look quaint in comparison.
It’s probably not premature to be asking: is there any company too big to be SPAC’d?
Just today, we saw the trading debut of the most valuable company to date go public through a merger with one of these SPACs: 35-five-year-old, Pontiac, Michigan-based United Wholesale Mortgage, which is among the biggest mortgage companies in the U.S.
Its shares slipped a bit by the end of trading, closing at $11.35 down from their starting price of $11.54, but it’s doubtful anyone involved is crying into their cocktails tonight. The outfit was valued at a whopping $16 billion when its merger with the blank-check outfit Gores Holdings IV was approved earlier this week.