This content is from: Premium

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.

  • By Stephen Taub

      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

To continue reading, subscribe now to Premium Journalism. Already a subscriber? Login.

Related Content