In June last year, hedge fund manager Falcon Edge Capital told clients about an exciting new investment opportunity that had “virtually zero-risk,” The Financial Times reports. The New York-based firm was referring to SPACs, which have taken Wall Street by storm and become a favourite investment among hedge fund managers. Blank-check companies, Falcon Edge wrote to investors, have an “inherently investor-friendly structure” with little downside. “The key to the SPAC structure is that investors can opt to receive all of their investment back,” it said. Falcon Edge was not the only evangelist. Its letter outlined the reasons why some of the world’s most influential hedge funds have piled into SPACs, fuelling a boom that has proved lucrative for both their early investors and promoters. Read more.
How Hedge Funds are Fuelling SPAC Boom: Report
