Boaz Weinstein, the hedge-fund founder known for making contrarian bets in arcane markets, has some unorthodox advice for investors worried about rising U.S. interest rates: Load up on SPACs.
Special-purpose acquisition companies, one of the red-hot trades during last year’s financial mania, are now so out of favor and so misunderstood by investors that they are undervalued, according to Weinstein, the founder of Saba Capital Management. Many credit derivatives are also looking cheap, he said.
