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Hedge Fund Bets Against a SPAC Tied to Trump After Truth Social ‘Disaster’

  • Kerrisdale bets DWAC will never get needed regulatory approval
  • Truth Social executives have left, downloads have dried up
Donald Trump tosses out MAGA hats at a rally in Ohio, in June 2021. 

Donald Trump tosses out MAGA hats at a rally in Ohio, in June 2021. 

Photographer: Matthew Hatcher/Bloomberg

Hedge fund Kerrisdale Capital Management is betting against the shell company tied to Donald Trump, wagering that it will fail to get regulatory approval to merge with his media company and take it public. 

Shares of Digital World Acquisition Corp., a special-purpose acquisition company, have more room to fall, according to a report Wednesday from Kerrisdale announcing its short position. DWAC gave misleading statements in registration documents and the high-profile nature of its potential combination with the former president’s company, Trump Media & Technology Group, is an “ideal way” for regulators to send a message to the broader industry, it said.