SPACs may be tanking, but that hasn’t deterred hedge funds from piling into them.
Hedge funds boosted their holdings of Special Purpose Acquisition Companies, or SPACs, by 73 percent during the first quarter.
These investors owned $142.9 billion worth of SPACs at the end of March, compared with only $82.4 billion as of the end of December, according to an analysis of 13F filings by SPAC Research.
The top three SPAC investors are Glazer Capital, Millennium Management, and Magnetar Capital, according to the ranking put together by SPAC Research.
So far this year, 324 SPACs have raised $103.6 billion, which is almost equal to the amount raised in the past three years combined, according to SPAC Insider. The glut caused blank check companies to begin floundering in mid-February, and now SPACs are in a bear market, as measured by the IPOX SPAC index. The index has fallen more than 30 percent from its February peak.
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When a significant volume of capital is raised from investors through nontraditional capital markets transactions, the U.S. Securities and Exchange Commission (SEC) is sure to follow with increased scrutiny.
SPACs are here to stay, but with some caution paymentssource.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from paymentssource.com Daily Mail and Mail on Sunday newspapers.