"Of the 313 SPACs IPOs since the start of 2015, 93 have completed mergers and taken a company public. Of these, the common shares have delivered an average loss of -9.6% and a median return of -29.1%, compared to the average aftermarket return of 47.1% for traditional IPOs since 2015."
"Although SPACs issue shares for roughly $10 and value their shares at $10 when they merge, by the time of the merger the median SPAC holds cash of just $6.67 per share."The dilution embedded in SPACs constitutes a cost roughly twice as high as the cost generally attributed to SPACs, even by SPAC skeptics."When commentators say SPACs are a cheap way to go public, they are right, but only because SPAC investors are bearing the cost, which is an unsustainable situation."Although some SPACs with high-quality sponsors do better than others, SPAC investors that hold shares at the time of a SPAC's merger see post-merger share prices drop on average by a third or more."
"Hedge funds have begun shorting SPACS, he says. SPAC IPOs are no longer hugely over-subscribed. And last week, the IPOX SPAC index – launched last September – fell into bear territory."