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SPAC Analyst Sees Very Brief Window Before Stocks Lose Money

  • Most SPACs are losing bets in months after completing a merger
  • Research firm studied 115 SPAC mergers between 2015 and 2020
RF markets stocks

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The longer a portfolio holds a special purpose acquisition company, the worse it’s going to perform, according to a new study by a special situations research firm.

Most SPACs lose money after finding a company to acquire, and they do so at an accelerating rate over the 12 months that follow a merger. That’s according to the Edge Consulting Group, a team of analysts that covers special situations, which researched 115 SPACs that closed acquisitions between 2015 and the end of 2020.