Last month I talked to you about my three favorite tech SPACs to watch and since then Altimeter Growth Corp (NASDAQ: AGC), AJAX 1 (NYSE: AJAX) and Reinvent Technology Partners (NYSE: RTP) are down 1%, up 8%, and up 30%. The good part is, we are not done yet.
Both Altimeter Growth and AJAX 1 have not identified an acquisition and their team is working diligently to find a great fit. What I want is what happened to Reinvent Technology Partners, where merger talks around Joby Aviation and Hippo send the stock flying.
I bet that this would happen as I dug into the management team and went with people who I was confident in to make a good deal. Fluctuation before a deal is made is normal and I never worry much about that given the amount of time management has to find a deal.
Outside of digging into management, I also look at another factor. I always ask myself, are there any big investors? Now I don’t have to see them, but it does help in some cases to push me to invest. They are not in it to lose money and the amount they are putting on the line gives me some confidence.
This money is also tied up and potentially not going up for months meaning they are missing out as the market continues to move up. Hedge funds are in this to make a lot of money and I want the same for you. Good targets also mean good long-term holdings.
I’ve recently seen two mergers I like and one where we could see something big.
ACE Convergence Acquisition Corp (NASDAQ: ACEV): Ace recently announced a business combination with Achronix Semiconductor, and this could end up being an amazing acquisition.
Achronix is a leader in high-performance field-programmable gate arrays (FPGAs), one of the hottest sectors in the semiconductor space. This is why Advanced Micro Devices Inc. (NASDAQ: AMD) spent $35B to acquire Xilinx.
If you want to read about why FPGA’s are such a big deal head over here, where I talk about the acquisition and the overall market.
I also like the big names involved in this one. Glazer Capital increased its position 82% from last quarter and has almost 800,000 shares. They are joined by other big money managers include Radcliffe Capital, Moore Capital, and Hudson Bay Capital.
Falcon Capital Acquisition Corp. (NASDAQ: FCAC): Falcon recently announced that it will take digital health company Sharecare public, and while it is up on the announcement, it is still trading under $12.
I’ve been raving about the future of digital health and how it has been a savior for many with the onset of the pandemic. I continue to believe that even after the pandemic, digital health will continue to provide value for millions of people.
Sharecare, founded by WebMD founder Jeff Arnold, is a health and well-being company that provides consumers with personalized information, programs, and resources to improve their health.
Funds like Magnetar and Bluefin Capital Management have major investments in this company, but what I like even more is the announcement that Anthem, the largest for-profit managed health care company in the Blue Cross Blue Shield Association is making a direct investment in the company and will expand its strategic partnership. This could potentially mean opening Sharecare to 40m new customers.
Gores Holdings V Inc. (NASDAQ: GRSV) – Gores Holdings V is the fifth SPAC led by Alec Gores and has experience in this market going back to 2016 when his first company acquired Hostess Brands. Since then, he has found several other companies to bring public included his most recent deal with Matterport. That SPAC is now up almost 100% since it formed.
Right now, Gores Holdings V is still trading within 10% of its par value and has big investors already in the stock. Apollo Management, Hound Partners, Magnetar, Millennium, and even Fortress Investment group have 1,000,000 shares. Given his experience in this market, it’s very possible he could make a big deal as the SPAC raised $525m, significantly more than the $300m in his fourth deal.
It’s clear that we’re living in a time where new kinds of investments are delivering incredible profit potential, and big institutions are starting to realize it. We can see that from these big hedge funds getting on board with these new SPACs, but it goes even further.
Even radical new asset classes like cryptocurrency are attracting interest from names as big as Tesla Inc. (TSLA). The thing is, just like SPACs, new opportunities in cryptocurrency are emerging fast, and they could take off in value even faster.
We can show you exactly which cryptocurrencies to buy to maximize your chances of incredible profits. All you have to do is click here to check it out.