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Why Hedge Funds Love SPACs
Davidson Kempner and other hedge fund firms regularly scoop up shares of these shell companies, which offer investors an irresistible twist.
Davidson Kempner Capital Management New York offices (Wikimedia Commons/Skylinerider) Hedge funds love heads-I-win, tails-I-don’t-lose investments. One such investment that has gained in popularity in recent years is SPACs, or special purpose acquisition companies, also known as blank-check companies. These are publicly traded entities, usually sponsored by private equity firms, that have no
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