Hedge Funds Scoop Up SPAC Shares

Basso and Difesa have cashed in on the boom in blank-check companies.

Thorsten Wagner/Bloomberg

Thorsten Wagner/Bloomberg

Hedge funds aren’t just launching their own special purpose acquisition companies —they’re also scooping up shares of these blank-check companies.

Firms such as Adage Capital Management, Falcon Edge Capital and Weiss Asset Management have disclosed large stakes in a slew of these companies seeking a merger partner for a reverse initial public offering.

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