RedBall SPAC, famously led by Gerry Cardinale and Billy Beane, has the most institutional shareholders of sports-focused SPACs on the market, Sportico reports. The 165 funds that own shares or warrants in RedBall handily outpace Alex Rodriguez’s Slam Corp., the runner-up with 120.
The problem is, fund ownership in SPACs isn’t the positive indicator it is for other stocks. Instead, SPACs are saddled with large numbers of arbitrage hedge fund investors. These “arb players” load up on equity early and seek to bail out with profits ahead of deals—leaving SPACs and long-term investors struggling with falling share prices right when they need market interest. Read more.
