Hedge Funds Pile Into Blank-Check Companies

Davidson Kempner and AQR piled into the same three special-purpose acquisition vehicles this month, while Luxor Capital provided financing for another SPAC acquisition.

(Griselda San Martin/Bloomberg)

(Griselda San Martin/Bloomberg)

November 15 was a big day for so-called SPACs, or special purpose acquisition companies, which have become a popular low-risk play for hedge funds.

On that day at least three SPACs — also known as blank-check companies — went public. The following day, hedge fund firms Davidson Kempner Capital Management and AQR Capital Management each took sizable stakes in each of those three new offerings, according to regulatory filings made public earlier this week.

Hedge

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

Related