In this article, we discuss the 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. If you want to skip our detailed analysis of these SPACs, go directly to the 2 Best SPACs to Buy Based on Jonathan Esfandi’s JNE Partners’ Latest Portfolio.
Special Purpose Acquisition Companies, or SPACs, have been one of the biggest earners in the stock market. Investors, especially hedge funds, are loading up on SPACs because of the immense growth opportunities they offer.
According to a report by Ernst & Young Global Limited, global SPAC IPOs during the first half of 2021 exceeded the record level set for all of last year, with 634 transactions completed. Among those, 182 SPACs announced acquisitions by the end of June valued at a total of $470 billion. As of June 30, 452 SPACs with about $136.5 billion in funds were looking for investment targets. Worldwide, IPOs of all types hit the highest level in 20 years during the first half of 2021, with 1,070 transactions valued at $222 billion.
According to a report by CB Insights, 2021 has seen 359 SPAC filings (i.e., shell companies that have listed shares), garnering a combined $95 billion, far surpassing 2020’s 254 filings and $74 billion raised. The first quarter of 2021 alone saw a record 298 SPACs formed, raising $83 billion, up from 134 deals and $35 billion the quarter prior. According to data compiled by SPAC Research, there have been more than 600 SPAC-facilitated mergers since 2020 that have generated over $195 billion.
JNE Partners is an FCA registered investment adviser based in London. The hedge fund is managed by Jonathan Esfandi who manages more than $136 million in 13F securities. The main focus of the fund is directed towards purchasing securities at substantial discounts to intrinsic value. Investments are typically concentrated, unlevered, long-biased, and are made with a long-term horizon. They employ a fundamental, value-based philosophy that targets a concentrated portfolio of equity and debt securities. Investments are made in both public and private markets, across a range of geographies with a focus on Europe.
Among the top contributors to JNE Partners’ latest portfolio, we have Comcast Corporation (NASDAQ: CMCSA), AMERCO (NASDAQ: UHAL), NovaGold Resources Inc. (NYSE: NG), Liberty Media Acquisition Corporation (NASDAQ: LMACA), and KKR Acquisition Holdings I Corp. (NYSE: KAHC).
JNE Partners owns more than 560,000 shares in Comcast Corporation (NASDAQ: CMCSA), worth over $32 million. This September, Loop Capital analyst Stephan Bisson initiated coverage of Comcast Corporation (NASDAQ: CMCSA) with a Buy rating and $71 price target.
AMERCO (NASDAQ: UHAL) covers 21.98% of the investment portfolio of JNE Partners. According to the latest 13F filings, JNE Partners owns more than 50,000 shares in AMERCO (NASDAQ: UHAL) that are worth $29.9 million. The share price for AMERCO (NASDAQ: UHAL) has gained 11.29% over the past 6 months, and 47.09% year to date.
As of the second quarter of 2021, JNE Partners’ investment portfolio comprises 1.95 million shares in NovaGold Resources Inc. (NYSE: NG). The investment is worth $15.6 million and covers a hefty 11.49% of their portfolio.
Image by Sergei Tokmakov, Esq. from Pixabay
Why should we pay attention to JNE’s SPAC picks? 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 86 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 86 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.
Our Methodology
With this context in mind, here is our list of the 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. These were ranked according to the investment portfolio of JNE Partners at the end of the second quarter of 2021. We also included the funds they raised at their initial public offering and the mergers they are presently involved in to provide readers with more insights so as to aid in their investment decisions.
7 Best SPACs to Buy Based on Jonathan Esfandi’s JNE Partners’ Latest Portfolio
7. Liberty Media Acquisition Corporation (NASDAQ:LMACA)
Esfandi’s Stake Value: $429,000
Percentage of Jonathan Esfandi’s 13F Portfolio: 0.31%
Liberty Media Acquisition Corporation (NASDAQ: LMACA) is a newly incorporated blank check company formed for the purpose of affecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company intends to search for a target in the media, digital media, music, entertainment, communications, telecommunications, and technology industries. Liberty Media Acquisition Corporation (NASDAQ: LMACA) was founded in 2020 and is based in Englewood, Colorado.
This January, Liberty Media Acquisition Corporation (NASDAQ: LMACA) raised $575 million in its Initial Public Offering on the Nasdaq Stock Exchange in the US. Liberty Media Acquisition (LMACA) priced its initial public offering over 50 million units at a price of $10.00 per unit. The company’s 57.5 million shares started trading at $10 per unit on January 22, under the symbol LMACU. Citigroup, Morgan Stanley, Credit Suisse, and Goldman Sachs & Co. LLC acted as joint book-running managers for the offering.
Liberty Media Acquisition Corporation (NASDAQ: LMACA) is ranked 7th on our list of 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. According to the latest filings, JNE Partners owned more than 42,000 shares in the company by the end of June 2021 worth $429,000, representing 0.31% of the portfolio.
6. KKR Acquisition Holdings I Corp. (NYSE:KAHC)
Esfandi’s Stake Value: $2,308,000
Percentage of Jonathan Esfandi’s 13F Portfolio: 1.69%
KKR Acquisition Holdings I Corp. (NYSE: KAHC) was formed for the purpose of affecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Although the company’s efforts to identify a prospective business combination opportunity will not be limited to a particular industry or geographic region, the company’s acquisition and value creation strategy are to identify, acquire and build a company in the consumer or retail industries. KKR Acquisition Holdings I Corp. (NYSE: KAHC) seeks to capitalize on the relationships, knowledge, and experiences of its Chief Executive Officer and Executive Chairman, Glenn Murphy. KKR Acquisition Holdings I Corp. (NYSE: KAHC) was incorporated in 2021 and is based in New York.
This March, KKR Acquisition Holdings I Corp. (NYSE: KAHC) raised $1.2 billion in an upsized initial public offering, selling 120 million units at $10 each. The special purpose acquisition company increased the offering from 100 million units it had marketed previously. Citigroup acted as the sole book-running manager.
5. Rocket Internet Growth Opportunities Corp. (NYSE:RKTA)
Esfandi’s Stake Value: $4,307,000
Percentage of Jonathan Esfandi’s 13F Portfolio: 3.16%
Rocket Internet Growth Opportunities Corp. (NYSE: RKTA) is a blank check company formed by Rocket Internet targeting the tech sector and focuses on affecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. Rocket Internet Growth Opportunities Corp. (NYSE: RKTA) company was founded in 2021 and is based in Grand Cayman, Cayman Islands.
This March, Rocket Internet Growth Opportunities Corp. (NYSE: RKTA) raised $250 million by offering 25 million units at $10. Each unit consisted of one share of common stock and one-fourth of a warrant, exercisable at $11.50. Citigroup acted as the sole book-running manager for the deal.
Rocket Internet Growth Opportunities Corp. (NYSE: RKTA) is ranked 5th on our list of 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. According to the latest filings, JNE Partners owned roughly 430,000 shares in the company by the end of June 2021 worth $4.3 million, representing 3.16% of the portfolio.
4. Waldencast Acquisition Corp. (NASDAQ:WALD)
Esfandi’s Stake Value: $9,950,000
Percentage of Jonathan Esfandi’s 13F Portfolio: 7.3%
Waldencast Acquisition Corp. (NASDAQ: WALD) focuses on affecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. It intends to identify businesses in the beauty, personal care, and wellness sectors. Waldencast Acquisition Corp. (NASDAQ: WALD) was incorporated in 2020 and is based in White Plains, New York.
This March, Waldencast Acquisition Corp. (NASDAQ: WALD) announced the closing of its upsized initial public offering of 34.5 million units at a price of $10.00 per unit and raised up to $678 million. Each unit consisted of one share of common stock and one-third of a warrant, exercisable at $11.50. Credit Suisse and J.P. Morgan acted as joint book-running managers for the offering.
Waldencast Acquisition Corp. (NASDAQ: WALD) is ranked 4th on our list of 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. According to the latest filings, JNE Partners owned 1 million shares in the company by the end of June 2021 worth $9.95 million, representing 7.3% of the portfolio.
Among other top picks such as Liberty Media Acquisition Corporation (NASDAQ: LMACA), Comcast Corporation (NASDAQ: CMCSA), AMERCO (NASDAQ: UHAL), and NovaGold Resources Inc. (NYSE: NG), Waldencast Acquisition Corp. (NASDAQ: WALD) is a SPAC worth investing in according to Jonathan Esfandi’s latest portfolio.
3. Elliott Opportunity II Corp. (NYSE:EOCW)
Esfandi’s Stake Value: $11,011,000
Percentage of Jonathan Esfandi’s 13F Portfolio: 8.08%
Elliott Opportunity II Corp. (NYSE: EOCW) intends to affect a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or assets. Elliott Opportunity II Corp. (NYSE: EOCW) intends to identify and acquire opportunities in the technology sector. Elliott Opportunity II Corp. (NYSE: EOCW) was incorporated in 2021 and is based in West Palm Beach, Florida.
This June, Elliott Opportunity II Corp. (NYSE: EOCW) announced that it priced its initial public offering of 53 million units at $10.00 per unit.
Elliott Opportunity II Corp. (NYSE: EOCW) is ranked 3rd on our list of 7 best SPACs to buy based on Jonathan Esfandi’s JNE Partners’ latest portfolio. According to the latest filings, JNE Partners owned 1.1 million shares in the company by the end of June 2021 worth more than $11 million, representing 8.08% of the portfolio.
Elliott Opportunity II Corp. (NYSE: EOCW), along with Liberty Media Acquisition Corporation (NASDAQ: LMACA), Comcast Corporation (NASDAQ: CMCSA), AMERCO (NASDAQ: UHAL), and NovaGold Resources Inc. (NYSE: NG) contributes significantly to Jonathan Esfandi’s 13F portfolio.
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Disclosure: None. 7 Best SPACs to Buy Based on Jonathan Esfandi’s JNE Partners’ Latest Portfolio is originally published on Insider Monkey.
