In this article, we will look at the 15 SPACs activist investor Jeff Smith is buying in 2022.
Jeff Smith, also known as “the most feared man in corporate America”, is an American activist investor and hedge fund manager. In the first quarter of 2020, Starboard Value returned an average of 37.81% quarter-on-quarter. Comparing this to the first quarter of 2021, the fund returned 4.37% quarter-on-quarter. This March, it was reported that in the fund’s 46 prior engagements, Starboard Value has returned 41.17% to investors, outperforming the S&P 500’s 16.25% returns over the same period.
Recent Activism of Starboard Value
On December 27, 2021, it was reported in a regulatory filing that Starboard Value purchased over 10,000 shares of GoDaddy, Inc. (NYSE:GDDY) for an all-cash transaction valued above $800 million. This made Starboard Value the top shareholder in the company and sent GoDaddy, Inc.’s (NYSE:GDDY) shares up 8%. As of March 31, 2022, Starboard Value owns more than 8.2 million shares of GoDaddy, Inc. and is the top shareholder in the company. The activist hedge fund’s stakes in the company were valued at $690.56 million, and GoDaddy, Inc. ranks at number 1 among Starboard Value’s 13F holdings.
This January, Jeff Smith’s Starboard Value reportedly made a bet to acquire Kohl’s Corporation for $9 billion at $64 per share. Kohl’s Corporation is one of the largest department store chains in the United States, operating 1,162 locations all over the country.
In February, Starboard Value sent a letter to LivePerson, Inc. (NASDAQ:LPSN) nominating four director candidates for the company’s board: Peter A. Feld, John R. McCormack, Vanessa Pegueros, and Yael Zheng. LivePerson, Inc. is a New York-based leading global software company, best known for its Conversational Cloud platform. In the first quarter of 2022, Starboard Value purchased over 6.4 million shares of LivePerson, Inc., successfully securing a 9.66% ownership interest in the company. Starboard Value is also the top shareholder in LivePerson, Inc. (LPSN), and the investment covers 2.07% of its 13F portfolio.
Starboard Value’s Latest 13F Portfolio
In the first quarter of 2022, Starboard Value entered 89 new companies, terminated 55 positions, and lowered its stakes in 66 stocks. The fund has investments across basic materials, healthcare, technology, financial services, industrials, and consumer cyclical sectors. Starboard Value has a top ten holdings concentration of above 60% and its top 13F holdings include AECOM (NYSE:ACM), Huntsman Corporation (NYSE:HUN), and GoDaddy Inc. (NYSE:GDDY).
Our Methodology
To determine the top 15 SPACs activist investor Jeff Smith is buying in 2022, we did a careful assessment of Starboard Value’s 13F portfolio at the close of Q1 2022. We narrowed down our selection to SPACs that Starboard Value entered in the first quarter of 2022. We have ranked the stocks in increasing order of Starboard Value’s stake in them.
15. Bullpen Parlay Acquisition Co (NASDAQ:BPAC)
Starboard Value LP Stake Value: $6,092,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
Bullpen Parlay Acquisition Co (NASDAQ:BPAC) operates as a special purpose acquisition company, focusing on effecting mergers, share exchanges, asset acquisition, share purchase, reorganization, or similar business combinations with one or more businesses. The company identifies business opportunities in the field of online real money gaming, technology, sports, digital media, hospitality, and leisure. Bullpen Parlay Acquisition Co was incorporated in 2021 and is based in San Francisco, California.
In the first quarter of 2022, Starboard Value initiated a position in Bullpen Parlay Acquisition Co and purchased about 0.61 million shares of the company. This amounts to a stake of $6.09 million which covers 0.08% of the fund’s 13F portfolio. The stock is ranked 44 on Starboard Value’s investment portfolio.
14. BioPlus Acquisition Corp. (NASDAQ:BIOS)
Starboard Value LP Stake Value: $6,098,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
BioPlus Acquisition Corp. (NASDAQ:BIOS) is another SPAC that caught the attention of Jeff Smith’s Starboard Value. The company focuses on businesses in the life sciences industry. BioPlus Acquisition Corp. was incorporated in 2021 and is based in New York.
As of March 31, Starboard Value owns roughly 0.61 million shares of BioPlus Acquisition Corp. which brings its stakes in the SPAC to over $6.09 million. The investment represents 0.08% of Jeff Smith’s hedge fund portfolio.
Starboard Value has a sizable stake in BioPlus Acquisition Corp.. Other companies that the hedge fund is heavily invested in include AECOM, Huntsman Corporation, and GoDaddy Inc..
13. Digital Health Acquisition Corp. (NASDAQ:DHAC)
Starboard Value LP Stake Value: $6,172,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
Digital Health Acquisition Corp. (NASDAQ:DHAC) is a special purpose acquisition company that focuses on effecting mergers, share exchanges, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combinations with one or more businesses or entities in the technology and healthcare sectors. Digital Health Acquisition Corp. was incorporated in 2021 and is based in Boca Raton, Florida.
In the first quarter of 2022, Starboard Value took a stake in Digital Health Acquisition Corp. and purchased an estimated 0.61 million shares of the company. This amounts to a stake of $6.17 million which represents 0.08% of Starboard Value’s 13F portfolio.
12. Consilium Acquisition Corp I Ltd. (NASDAQ:CSLM)
Starboard Value LP Stake Value: $6,239,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
Consilium Acquisition Corp I, Ltd. (NASDAQ:CSLM) is a SPAC that intends to focus on companies operating in the technology, financial services, and media sectors that are located in Frontier Growth Markets. The company was incorporated in 2021 and is based in Fort Lauderdale, Florida.
As of this March, Starboard Value’s stake in Consilium Acquisition Corp I, Ltd. is valued at $6.23 million. The fund owns over 0.63 million shares of the company which represents 0.08% of Starboard Value’s 13F portfolio. The SPAC is ranked at number 41 among Starboard Value’s 13F holdings.
11. Mount Rainier Acquisition Corp. (NASDAQ:RNER)
Starboard Value LP Stake Value: $6,367,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
Mount Rainier Acquisition Corp. (NASDAQ:RNER) intends to enter into mergers, share exchanges, asset acquisition, stock purchases, recapitalization, reorganization, or other similar business combinations with one or more businesses or entities in the technology sector. Mount Rainier Acquisition Corp. was incorporated in 2021 and is based in New York.
In Q1 2022, Starboard Value went long Mount Rainier Acquisition Corp. and purchased more than 0.63 million shares of the company. This amounts to stakes of $6.36 million, an investment that covers 0.08% of Jeff Smith’s hedge fund portfolio. The stock is ranked 39 among the fund’s 13F holdings.
10. Burtech Acquisition Corp. (NASDAQ:BRKHU)
Starboard Value LP Stake Value: $6,540,000
Percentage of Starboard Value’s 13F Portfolio: 0.08%
Burtech Acquisition Corp. (NASDAQ:BRKHU) acquires businesses in the retail, lifestyle, hospitality, technology, and real estate markets. The company is a SPAC that focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Burtech Acquisition Corp. was incorporated in 2021 and is based in Washington, District of Columbia.
As of this March, Starboard Value owns more than 0.66 million shares of Burtech Acquisition Corp. which cover 0.08% of its investment portfolio. The fund’s stakes in the SPAC are valued at $6.54 million.
9. Atlantic Coastal Acquisition Corp. (NASDAQ:ACAH)
Starboard Value LP Stake Value: $7,441,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
Atlantic Coastal Acquisition Corp. (NASDAQ:ACAH) operates as a special acquisition company and indents to acquire businesses in the mobility sector through effecting mergers, capital stock exchanges, asset acquisition, stock purchases, reorganization, or similar business combinations. The company was incorporated in 2020 and is based in New York, New York.
In the first quarter of 2022, Starboard Value went long Atlantic Coastal Acquisition Corp., purchasing 0.75 million shares of the company. This amounts to stakes of $7.44 million which covers 0.09% of Jeff Smith’s investment portfolio and places the SPAC at number 33 on Starboard Value’s investment portfolio.
8. Papaya Growth Opportunity Corp. I (NASDAQ:PPYAU)
Starboard Value LP Stake Value: $7,448,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
Papaya Growth Opportunity Corp. I (NASDAQ:PPYAU) is a newly incorporated special purpose acquisition company. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Papaya Growth Opportunity Corp. I was incorporated in 2021 and is based in Oakland, California.
As of the first quarter of 2022, Jeff Smith’s Starboard Value owns 0.75 million shares of Papaya Growth Opportunity Corp. I which covers 0.09% of the fund’s 13F portfolio. The fund’s stakes in the shell company are valued at $7.44 million and the stock is ranked 32 among the fund’s 13F holdings.
Just like AECOM, Huntsman Corporation, and GoDaddy Inc., Papaya Growth Opportunity Corp. I is among the top 13F holdings of Jeff Smith’s Starboard Value.
7. Knightswan Acquisition Corp (NYSE:KNSW)
Starboard Value LP Stake Value: $7,448,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
KnightSwan Acquisition Corporation (NYSE:KNSW) is a special purpose acquisition company focusing on acquiring businesses in the cloud, cybersecurity, and mission intelligence sectors. KnightSwan Acquisition Corporation was incorporated in 2021 and is based in New York, New York.
In the first quarter of 2022, Starboard Value went long on KnightSwan Acquisition Corporation and purchased more than 0.70 million shares of the company. This brings the fund’s stakes in KnightSwan Acquisition Corporation to $7.44 million, which represents 0.09% of its investment portfolio.
6. Banyan Acquisition Corp (NYSE:BYN)
Starboard Value LP Stake Value: $7,448,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
Banyan Acquisition Corp (NYSE:BYN) operates as a shell company and focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company intends to acquire businesses in the food services industry. Banyan Acquisition Corp was incorporated in 2021 and is based in Northbrook, Illinois.
As of March 31, Starboard Value owns more than 0.70 million shares of Banyan Acquisition Corp which brings its stakes in the SPAC to $7.44 million. The investment covers 0.09% of Jeff Smith’s investment portfolio and places the stock at number 30 among Starboard Value’s 13F holdings.
5. HCM Acquisition Corp (NASDAQ:HCMA)
Starboard Value LP Stake Value: $7,478,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
HCM Acquisition Corp (NASDAQ:HCMA) is a shell company that focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. HCM Acquisition Corp was incorporated in 2021 and is based in Stamford, Connecticut.
HCM Acquisition Corp is another SPAC that caught the attention of activist investor Jeff Smith in the first quarter of 2022. As of March 31, Starboard Value’s stakes in HCM Acquisition Corp are valued at $7.47 million, which covers 0.09% of its 13F portfolio.
4. Kimbell Tiger Acquisition Corp (NYSE:TGR)
Starboard Value LP Stake Value: $7,523,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
Kimbell Tiger Acquisition Corp (NYSE:TGR) operates as a SPAC and focuses on acquiring business in the energy and natural resources industry in North America. Kimbell Tiger Acquisition Corp company was incorporated in 2021 and is based in Fort Worth, Texas.
In the first quarter of 2022, Starboard Value went long Kimbell Tiger Acquisition Corp and purchased more than 0.70 million shares of the shell company. This amounts to a stake of $7.52 million which covers 0.09% of the fund’s 13F portfolio and ranks the stock 28 among the fund’s 13F holdings.
3. Clean Earth Acquisitions Corp. (NASDAQ:CLIN)
Starboard Value LP Stake Value: $7,530,000
Percentage of Starboard Value’s 13F Portfolio: 0.09%
Clean Earth Acquisitions Corp. (NASDAQ:CLIN) intends to acquire assets or businesses through a merger, capital stock exchange, stock purchase, reorganization, or similar business combination. The SPAC focuses on acquiring companies in the clean energy ecosystem, including carbon, hydrogen, sustainable agriculture, and renewable energy. Clean Earth Acquisitions Corp. was incorporated in 2021 and is based in Bee Cave, Texas.
As of March 31, Starboard Value owns 0.75 million shares of Clean Earth Acquisitions Corp. which brings its stakes in the SPAC to $7.53 million. The investment covers 0.09% of its investment portfolio and ranks the stock at number 27 among the fund’s top 13F holdings.
2. Integrated Rail & Resources Acquisition Corp (NYSE:IRRX)
Starboard Value LP Stake Value: $9,332,000
Percentage of Starboard Value’s 13F Portfolio: 0.12%
Integrated Rail and Resources Acquisition Corp. (NYSE:IRRX) focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in railroad companies in North America. Integrated Rail and Resources Acquisition Corp. was incorporated in 2021 and is based in Fort Worth, Texas.
In the first quarter of 2022, Jeff Smith’s Starboard Value went long in Integrated Rail and Resources Acquisition Corp. and purchased more than 0.93 million shares of the shell company. The fund’s stakes in the company, as of March 31, are valued at $9.33 million. The investment covers 0.12% of Starboard Value’s 13F portfolio.
1.E.Merge Technology Acquisition Corp. (NASDAQ:ETACU)
Starboard Value LP Stake Value: $14,320,000
Percentage of Starboard Value’s 13F Portfolio: 0.18%
E.Merge Technology Acquisition Corp. (NASDAQ:ETACU) is the top SPAC bought buy activist investor Jeff Smith in 2022. The company seeks to acquire companies in the software and internet technology industries. E.Merge Technology Acquisition Corp. was incorporated in 2020 and is based in Burlingame, California.
At the close of Q1 2022, Starboard Value entered E.Merge Technology Acquisition Corp. and purchased over 1.44 million shares of the shell company. The fund’s stakes in the SPAC are valued at $14.32 million, which covers 0.18% of its 13F portfolio and ranks the stock 25 among its 13F holdings.
You can also take a look at 10 Best SPACs to Buy According to David Einhorn’s Greenlight Capital and 10 Best SPACs to Buy According to SoftBank’s Masayoshi Son.
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This article is originally published at Insider Monkey.
