In this article, we discuss the 10 best SPACs to buy according to SoftBank’s Masayoshi Son. If you want to skip our detailed analysis of Son’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best SPACs to Buy According to SoftBank’s Masayoshi Son.
Masayoshi Son, the Japanese billionaire who runs the multi-billion dollar hedge fund, SB Management, as well as SoftBank Group, the Tokyo-based holding company with interests in a wide variety of businesses across the world, has invested a lot of money in special purpose acquisition companies (SPACs) in the first quarter of 2021, according to the latest regulatory filings. Son, one of the richest men in the world with a net personal worth of $35 billion, is also one of the most shrewd investors. His hedge fund has a portfolio value of over $15 billion.
Son has made a name for himself on Wall Street through investments in high growth technology stocks like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT) over the years. These four tech firms still represent close to 75% of the total portfolio of SB Management. However, Son has also earned admiration by taking SoftBank Group to new heights. The firm recently made history by declaring the largest ever quarterly profit by a Japanese entity.
SPACs have been a hot item in the finance world over the past year and a half, facilitating more than 600 initial public offerings during the period and raising close to $200 billion in the process, according to SPAC Research, an online database monitoring these firms. However, interest in SPACs has been waning as inflation and market saturation force investors to think twice about pouring money into these blank cheque entities. Son is not alone in jumping on the SPAC craze, David Einhorn of Greenlight Capital has also done the same over the past few months.
It remains to be seen whether the investments that Son has made in these special purpose firms over the past few months pay off. All of the SPAC-linked holdings presently in the investment portfolio of SB Management were added in the first three months of 2021. The top ten SPAC holdings of the fund together represent more than 2.27% of the total SB portfolio at the end of the first quarter of 2021. They have a combined worth of over $350 million. Technology, one of the favorite investment areas of Son, seems to be the key focus of these SPACs as well.
Son has managed to make handsome profits for his clients at a time when the wider market has been struggling. 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. On the other hand, 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 February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.
Masayoshi Son of SB Management
With this context in mind, here is our list of the 10 best SPACs to buy according to SoftBank’s Masayoshi Son. These were ranked according to the investment portfolio of SB Management at the end of the first quarter of 2021.
Best SPACs to Buy According to SoftBank’s Masayoshi Son
10. SVF Investment Corp. 3 (NASDAQ: SVFC)
SVF Investment Corp. 3 (NASDAQ: SVFC) is a special purpose acquisition company based in California. It is ranked tenth on our list of 10 best SPACs to buy according to SoftBank’s Masayoshi Son. The firm went public in March 2021, raising more than $320 million from the initial offering. It concentrates on mergers with companies working in the technology sector in the United States. The CEO of the company is Ioannis Pipilis.
SVF Investment Corp. 3 (NASDAQ: SVFC) has a market capitalization of over $407 million. The company was in talks for a merger with MapBox, a company that markets custom-made online maps to different kinds of businesses. However, the talks did not result in a successful merger, as per media reports. The maps firm is valued at close to $2 billion.
At the end of the first quarter of 2021, SB Management owned 2 million shares in SVF Investment Corp. 3 (NASDAQ: SVFC) worth $20 million. This represented 0.13% of the investment portfolio of SB Management.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT), SVF Investment Corp. 3 (NASDAQ: SVFC) is one of the top holdings in the investment portfolio of SoftBank’s Masayoshi Son.
9. SVF Investment Corp. (NASDAQ: SVFA)
SVF Investment Corp. (NASDAQ: SVFA) is placed ninth on our list of 10 best SPACs to buy according to SoftBank’s Masayoshi Son. It is a special purpose acquisition company based in California. The firm went public in January 2021, raising $603 million from the initial offering. The company focuses on mergers with firms working in the technology sector in the United States. The CEO of the SPAC is Rajeev Misra.
SVF Investment Corp. (NASDAQ: SVFA) has a market capitalization of over $747 million. The firm is still searching for a merger with a technology startup to help it go public. The 52-week price range of the stock is between $9.7 and $14.2.
At the end of the first quarter of 2021, SB Management owned 2.2 million shares in SVF Investment Corp. (NASDAQ: SVFA) worth $23.2 million. This represented 0.14% of the investment portfolio of SB Management.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT), SVF Investment Corp. (NASDAQ: SVFA) is one of the top holdings in the investment portfolio of SoftBank’s Masayoshi Son.
8. Pioneer Merger Corp. (NASDAQ: PACX)
Pioneer Merger Corp. (NASDAQ: PACX) is a special purpose acquisition company based in New York. It is ranked eighth on our list of 10 best SPACs to buy according to SoftBank’s Masayoshi Son. The firm went public in January 2021, managing to raise more than $402 million from the initial offering. The CEO of the company is Ryan Khoury. It concentrates on mergers with companies working in the United States.
Pioneer Merger Corp. (NASDAQ: PACX) has a market capitalization of over $496 million. The firm has signed a definitive agreement for a merger with Acorns, a financial technology company that operates from California. The fintech firm is valued at close to $2.2 billion.
At the end of the first quarter of 2021, SB Management owned 2.7 million shares in Pioneer Merger Corp. (NASDAQ: PACX) worth $26.7 million. This represented 0.17% of the investment portfolio of SB Management.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT), Pioneer Merger Corp. (NASDAQ: PACX) is one of the top holdings in the investment portfolio of SoftBank’s Masayoshi Son.
7. Aurora Acquisition Corp. (NASDAQ: AURC)
Aurora Acquisition Corp. (NASDAQ: AURC) is placed seventh on our list of 10 best SPACs to buy according to SoftBank’s Masayoshi Son. It is a special purpose acquisition company based in London. It went public in March 2021, managing to raise close to $243 million from the initial offering. The company concentrates on mergers with firms working in the media and technology sectors, primarily in Europe, Middle East, and Africa. The CEO of the SPAC is Arnaud Massenet.
Aurora Acquisition Corp. (NASDAQ: AURC) has a market capitalization of over $347 million. It has signed a definitive agreement for a merger with Better, a technology-focused home ownership platform. Better is planning to go public soon and is valued at close to $6 billion.
At the end of the first quarter of 2021, SB Management owned 2.7 million shares in Aurora Acquisition Corp. (NASDAQ: AURC) worth $27 million. This represented 0.17 % of the investment portfolio of SB Management.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT), Aurora Acquisition Corp. (NASDAQ: AURC) is one of the top holdings in the investment portfolio of SoftBank’s Masayoshi Son.
6. Revolution Healthcare Acquisition Corp. (NASDAQ: REVHU)
Revolution Healthcare Acquisition Corp. (NASDAQ: REVHU) is a special purpose acquisition company based in Massachusetts. It is ranked sixth on our list of 10 best SPACs to buy according to SoftBank’s Masayoshi Son. The firm went public in March 2021, raising over $550 million from the initial public offering. It focuses on mergers with companies working in the health, healthcare technology, and life sciences sectors in the United States. The CEO of the firm is Jay Markowitz.
Revolution Healthcare Acquisition Corp. (NASDAQ: REVHU) has a market capitalization of more than $564 million. It is still searching for a company to merge with. The 52-week price range of the stock is between $9.7 and $10.7.
At the end of the first quarter of 2021, SB Management owned 3 million shares in Revolution Healthcare Acquisition Corp. (NASDAQ: REVHU) worth $30 million. This represented 0.19% of the investment portfolio of SB Management.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), PayPal Holdings, Inc. (NASDAQ: PYPL), and Microsoft Corporation (NASDAQ: MSFT), Revolution Healthcare Acquisition Corp. (NASDAQ: REVHU) is one of the top holdings in the investment portfolio of SoftBank’s Masayoshi Son.
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Disclose. None. 10 Best SPACs to Buy According to SoftBank’s Masayoshi Son is originally published on Insider Monkey.
