Companies that have gone public by merging with a SPAC have underperformed the S&P 500 by 80 percentage points since 2018, according to a new deSPAC Index launched by PitchBook today, Institutional Investor reports. The index has posted a decline of 31.6% since 2018, compared with a gain of 50.4% for the S&P 500, according to PitchBook, which is owned by Morningstar.
This year the index is down 30.1%, compared with a 10.6% drop for the S&P 500.
What’s more, at no time during the recent SPAC boom — except for a few days in early 2021 — did these companies outperform the S&P 500, according to a chart in the performance report. Read more.
