SPAC or SPAM, the aftertaste is sour

In March, our SPAC, off-the-shelf dream? article explained that SPACs are the new blank check package, as well as their large issuance volume in 2017-21, the regulator’s warnings, and the clouds on the horizons.

Bloomberg’s recent article SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya confirms the bad omens – the followers of the big SPAC prophets have a sour aftertaste; the can’s content isn’t as savory as expected. As per the Bloomberg article:

  • Chamath Palihapitiya | LinkedIn enjoyed being the face of the SPAC frenzy. He challenged the wisdom of Warren Buffett (has anybody won that challenge? Some have bet and lost millions) with a “Nobody’s going to listen to Buffett” comment. And in all his modesty:Chamath Palihapitiya's modesty
  • Well, the last pattern is that all 6 of his SPACs have plunged more than the broader SPAC market.

Palihapitiya Plunge

  • Chamath Palihapitiya didn’t respond to Bloomberg’s request for comments…

Credits

Bloomberg, April 17th, 2021, by Brandon Kochkodin : SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya

Bloomberg Article Chamath Palihapitiya

 

Unicorn meat

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Written by Gontran de Quillacq

Gontran de Quillacq is an expert witness and a legal consultant. He is a recognized authority in options, trading, derivatives, structured products, portfolio management, hedge funds, mathematical finance, quantitative investment, strategy research and financial markets in general.

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