SPACs are the future, but you have to be smart about investing in them July 26, 2021 By Luke Lango, InvestorPlace Senior Investment Analyst Jul 26, 2021, 4:56 pm EDT July 26, 2021
It was in that month that space tourism pioneer
Virgin Galactic (NYSE:
But the shocker came when Virgin announced that it would
not be going public through a traditional IPO process. Rather, the Richard Branson-backed company said it was going public by merging with a special purpose acquisition company or
SPAC, for short backed by former Facebook exec and billionaire venture capital investor Chamath Palihapitiya.
At the time, investors raised their eyebrows at the news, but didn’t make much of it…
But average SPAC deal size is climbing, sparking hope for SPAC-based ETF issuer Mark Yusko that these new investment vehicles still have legs. The size of an IPO, whether it s a traditional IPO or a SPAC, is absolutely a proxy for quality. And the size of the average SPAC has been rising. The size of the average IPO has been falling, the CEO and chief investment officer of Morgan Creek Capital Management told CNBC s ETF Edge on Monday.
Morgan Creek helps run the Morgan Creek - Exos SPAC Originated ETF (SPXZ), an actively managed basket with two-thirds of its assets in post-merger SPACs. Its largest holdings are in U.S. Treasury bills, Paya Holdings and MP Materials. It also holds shares of 23andMe, Utz Brands and Virgin Galactic.
(Bloomberg) Investors are rediscovering their appetite for the market’s speculative fringes.The shares of GameStop Corp. and AMC Entertainment Holdings Inc. the poster-children of this year’s Reddit boom are surging. Interest in special purpose acquisition companies has reignited with Chamath Palihapitiya’s blank-check firms leading the way. And Bitcoin and Ether are up after last week’s bonfire in cryptocurrencies.While the catalyst is unclear, retail traders appear to be driving the action. Touts are plastered all over social media with individual investors attempting to pump their bets on Twitter, Reddit’s WallStreetBets and chatrooms on Stocktwits.“The Reddit raiders are at it again,” Michael Pachter, analyst at Wedbush Securities, said as shares of GameStop and AMC were among the most actively traded stocks Wednesday. “It looks retail driven to me.”Memes Are ForeverWhile the S&P 500 is virtually flat this mo