But the video-game retailer offers a cautionary tale for investors trying to capitalize on a hot-ticket item: TheIn the case of SPACs, retail investors seem to be chasing past returns, according to Ritter.
A key selling point of SPACs has been their money-back guarantee, which limits downside risk. Investors can choose to redeem their shares when a merger or acquisition is announced, rather than become shareholders in the combined entity. The typical buy-and-hold SPAC investor earned a 45% gross return between January 2019 and 2021, Michael Cembalest wrote in a recent JPMorgan analyststock index, which yielded 52% over the same time period.
The typical SPAC fund manager also earned far more money than investors — a 682% return over that two-year time horizon, according to Cembalest.
Source: Entertainment Trends (entertainmenttrends.net)
GregIacurci great article, people need to understand the downside of paying 6x of NAV for a rumored CCIV merger. In retrospect, SPACs are still a great investment if done with proper due diligence and no where comparable to volatility of bitcoin or gold!
How about Asian month
Investing in a company with no product, no customers, no revenue etc. Surely that isn't risky. 🙄
Caution indeed but can’t be compared to all the overvalued IPOs from the get-go led by the big boys.
SPAC-a-SHAQ
Seems like a game for the professionals and even they are worried.
Shaq?
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