In this article, we discuss the 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital based on Q2 holdings of the fund. If you want to skip our detailed analysis the SPAC industry, go directly to the 5 Best SPACs to Buy According to Herb Wagner’s FinePoint Capital.
Special purpose acquisition companies, or SPACs, collect money from investors via a public offering and then utilize the proceeds to find a private business to take public.
Over the past few months, hedge funds are taking a special interest in SPACs. Bloomberg reports that among the notable hedge funds betting on SPACs include Polar Asset Management Partners Inc., Davidson Kempner Capital Management, and CNH Partners. In addition, Millennium Management, Magnetar Capital, FinePoint Capital, and Glazer Capital have lately invested in SPACs. SPACs in North America alone raised $70 billion in 2020, most of it coming from the hedge fund industry.
In this article our focus would be on top SPAC picks of Herb Wagner’s FinePoint Capital, a Boston-based hedge fund, which was established in the year 2013. The hedge fund gives portfolio management and investment advisory services. In the second quarter of 2021, the total value of FinePoint Capital’s 13F portfolio is $533.39 million.
Before we dig deeper into FinePoint’s SPAC picks, let’s take a look at some of the most notable SPAC stocks that have the attention of investors. These include Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG) and Nikola Corporation (NASDAQ: NKLA).
Virgin Galactic Holdings, Inc. (NYSE: SPCE) is an integrated aerospace business based in the United States, developing human spaceflight for private people and researchers. The company was founded in 2017. On August 31, Jefferies analyst Greg Konrad initiated coverage of Virgin Galactic Holdings, Inc. (NYSE: SPCE) with a “Buy” rating and gave the price target of $33. Shares of Virgin Galactic Holdings, Inc. (NYSE: SPCE) surged 52.29% in the past 12 months
DraftKings Inc. (NASDAQ: DKNG) was founded in 2011, and it functions as a digital sports entertainment and gaming company in the United States. On August 9, Northland analyst Greg Gibas raised the price target on DraftKings Inc. (NASDAQ: DKNG) to $75 from $70 and kept an “Outperform” rating on the shares.
Nikola Corporation (NASDAQ: NKLA) is a US-based company that develops and integrates energy and transportation solutions. On September 2, Nikola Corporation (NASDAQ: NKLA) and Bosch Group struck a series of agreements allowing the former to manufacture Bosch fuel-cell power modules at its Coolidge, Arizona facility. On August 10, DA Davidson analyst Michael Shlisky initiated coverage of Nikola Corporation (NASDAQ: NKLA) with a “Neutral” rating and gave the price target of $10. Nikola Corporation (NASDAQ: NKLA) currently has a $4.17 billion market capitalization.
The finance world is evolving. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital. These were ranked according to the investment portfolio of FinePoint Capital at the end of the second quarter of 2021.
Best SPACs to Buy According to Herb Wagner’s FinePoint Capital
10. Senior Connect Acquisition Corp. I (NASDAQ: SNRH)
Wagner’s Stake Value: $18,418,000
Percentage of Herb Wagner’s 13F Portfolio: 3.45%
Senior Connect Acquisition Corp. I (NASDAQ: SNRH) combines one or more firms by a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination. The company was previously known as Health Connect Acquisitions Corp. I. It was incorporated in 2020 and stands tenth on the list of 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital.
Senior Connect Acquisition Corp. I (NASDAQ: SNRH) went public in December 2020, raising more than $414 million from the initial offering. On August 16, Senior Connect Acquisition Corp. I (NASDAQ: SNRH) posted earnings for the second quarter of 2021. It declared earnings per share of -$0.31, while the earnings per share for the first six months of 2021 was -$0.23.
FinePoint Capital holds 1.89 million shares in Senior Connect Acquisition Corp. I (NASDAQ: SNRH), worth over $18.42 million. This represents 3.45% of their portfolio. Ricky Sandler’s Eminence Capital is a leading shareholder in Senior Connect Acquisition Corp. I (NASDAQ: SNRH) with 3.34 million shares, worth more than $32.55 million.
As companies likes Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG), and Nikola Corporation (NASDAQ: NKLA) become public through SPACs, retail investors and hedge funds are loading up on SPAC stocks.
9. FirstMark Horizon Acquisition Corp. (NYSE: FMAC)
Wagner’s Stake Value: $18,438,000
Percentage of Herb Wagner’s 13F Portfolio: 3.45%
FirstMark Horizon Acquisition Corp. (NYSE: FMAC) identifies companies that will generate profit after getting public. It focuses on bringing one or more firms together through merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar corporate combinations. The company was incorporated in 2020 and ranks ninth on the list of 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital. FirstMark Horizon Acquisition Corp. (NYSE: FMAC) has a market capitalization of $506.12 million.
In the past 52 weeks, FirstMark Horizon Acquisition Corp. (NYSE: FMAC) moved within the range of $9.69 – $14.44. FirstMark Horizon Acquisition Corp. (NYSE: FMAC) went public in October 2020, raising $360 million from the initial offering. On August 13, FirstMark Horizon Acquisition Corp. (NYSE: FMAC) posted earnings for the second quarter of 2021. It declared earnings per share of $0.02 and the earnings per share of $1.13 for the first six months of 2021.
Herb Wagner’s FinePoint Capital currently owns 1.86 million shares of FirstMark Horizon Acquisition Corp. (NYSE: FMAC), worth $18.44 million. The company occupies 3.45% of FinePoint Capital’s overall equity. Hedge fund sentiment increased for FirstMark Horizon Acquisition Corp. (NYSE: FMAC) in the second quarter. Insider Monkey’s data shows that 39 elite hedge funds held stakes in the company in the second quarter of 2021, up from 34 funds a quarter earlier.
As companies likes Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG), and Nikola Corporation (NASDAQ: NKLA) become public through SPACs, retail investors and hedge funds are loading up on SPAC stocks.
8. Churchill Capital Corp VII (NYSE: CVII)
Wagner’s Stake Value: $18,455,000
Percentage of Herb Wagner’s 13F Portfolio: 3.45%
Churchill Capital Corp VII (NYSE: CVII) is a special purpose acquisition company in New York. The company was founded in 2020, and it stands eighth on the list of 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital. Churchill Capital Corp VII (NYSE: CVII) presently has a market capitalization of $1.68 billion.
Churchill Capital Corp VII (NYSE: CVII) went public in February 2021 and managed to raise more than $1.2 billion from the offering. On August 16, Churchill Capital Corp VII (NYSE: CVII) announced earnings for the second quarter of 2021. It posted a net loss per share of $0.17, and a net loss of $0.23 for the first six months of 2021.
The hedge fund chaired by Herb Wagner holds 1.90 million shares in Churchill Capital Corp VII (NYSE: CVII), worth over $18.46 million. Magnetar Capital is the most significant stakeholder in Churchill Capital Corp VII (NYSE: CVII), with 11.06 million shares worth $110.72 million.
As companies likes Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG), and Nikola Corporation (NASDAQ: NKLA) become public through SPACs, retail investors and hedge funds are loading up on SPAC stocks.
7. Cohn Robbins Holdings Corp. (NYSE: CRHC)
Wagner’s Stake Value: $18,475,000
Percentage of Herb Wagner’s 13F Portfolio: 3.46%
Cohn Robbins Holdings Corp. (NYSE: CRHC) is a Wilmington, Delaware-based special purpose acquisition firm. The company was previously known as CSR Acquisition Corp. It was incorporated in 2020 and is placed seventh on the list of 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital. Cohn Robbins Holdings Corp. (NYSE: CRHC) currently has a market capitalization of $1.01 billion.
Cohn Robbins Holdings Corp. (NYSE: CRHC) went public in September 2020 and raised more than $720 million from the offering. On August 16, Cohn Robbins Holdings Corp. (NYSE: CRHC) posted earnings for the second quarter of 2021. It reported earnings per share of $0.15 for the second quarter and an EPS of $1.19 for the first six months of 2021.
Herb Wagner’s FinePoint Capital owns 1.88 million shares of Cohn Robbins Holdings Corp. (NYSE: CRHC), worth $18.48 million. In addition, hedge funds are loading up on Cohn Robbins Holdings Corp. (NYSE: CRHC), as Insider Monkey’s data shows that 53 hedge funds held a stake in the company in the second quarter of 2021, compared to 50 funds in the previous quarter.
Just like Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG), and Nikola Corporation (NASDAQ: NKLA), Cohn Robbins Holdings Corp. (NYSE: CRHC) is a notable SPAC stock.
6. Apollo Strategic Growth Capital II (NYSE: APGB)
Wagner’s Stake Value: $18,493,000
Percentage of Herb Wagner’s 13F Portfolio: 3.46%
Apollo Strategic Growth Capital II (NYSE: APGB) is a New York-based special purpose acquisition firm. It is ranked sixth on the list of 10 best SPACs to buy according to Herb Wagner’s FinePoint Capital. The firm was previously known as APH I (Sub I), Ltd., but in December 2020, it changed its name to Apollo Strategic Growth Capital II (NYSE: APGB). The company has a market capitalization of $836.62 million.
On August 12, Apollo Strategic Growth Capital II (NYSE: APGB) declared earnings for the second quarter of 2021. It reported earnings per share of $0.07, and earnings of $0.39 for the first six months of 2021. On February 9, Apollo Strategic Growth Capital II (NYSE: APGB) launched an initial public offering (IPO) of 50 million shares for $10 per unit, with underwriters having the option to purchase an additional 7.5 million units.
Herb Wagner’s FinePoint Capital currently holds 1.89 million shares of Apollo Strategic Growth Capital II (NYSE: APGB) that amounts to $18.49 million. The company occupies 3.46% of FinePoint Capital’s total portfolio.
Just like Virgin Galactic Holdings, Inc. (NYSE: SPCE), DraftKings Inc. (NASDAQ: DKNG), and Nikola Corporation (NASDAQ: NKLA), Apollo Strategic Growth Capital II (NYSE: APGB) is a notable SPAC stock.
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Disclosure: None. 10 Best SPACs to Buy According to Herb Wagner’s FinePoint Capital is originally published on Insider Monkey.
