In this article, we will take a look at the top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
Falcon Edge Capital, based in New York, is a venture capital and alternative asset management company. The company has a diversified portfolio of investments and partnerships around the world. The company has offices in New York, Miami, London, Abu Dhabi, Tel Aviv, and Bangalore. The company was founded by Rick Gerson, Navroz Udwadia, and Ryan Khoury in 2012.
Rick Gerson began his career at Julian Robertson‘s Tiger Management and cofounded Blue Ridge Capital in 1996.
As of the second quarter of 2021, Falcon Edge Capital has stakes in 106 holdings. The portfolio has increased its value from $1.12 billion in Q2 2020 to $1.56 billion in Q2 2021. The company focuses on investing in tech startups and SPACs.
Falcon Edge Capital invested more than $1 billion in Indian tech startups over a period of just four months. The major Indian tech startups in which the company has invested in are Swiggy, Dream11, and Policybazaar.
Falcon’s portfolio of the second quarter shows that the fund is increasing its focus on SPACs.
SPACs are special purpose acquisition companies that are formed solely for the purpose of merger with other businesses. The interest in SPACs has increased over the years. According to data compiled by SPAC insider, a New-York based online publication, the total number of IPOs facilitated by SPACs is reported to be 248 in 2020, about five times more than that of the previous year.
Besides SPACs, Falcon Edge Capital has invested in sectors like technology and consumer services with 12% and 13% allocations, respectively. The technology sector delivered a very impressive return in 2020 due to COVID-19. This is evident as Nasdaq Composite reported a return of 43.64% in 2020, beating S&P’s 16.26% gains. The significant allocation of the hedge fund in high-cap companies include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Sea Limited (NYSE:SE).
Alphabet Inc. is a technology conglomerate that owns big names like Google, YouTube, and Waymo. As of the end of the second quarter of 2021, Falcon Edge Capital holds 22,762 shares in Alphabet Inc., valued at $57 million.
Microsoft Corporation is based in Washington and offers its services in software technology. According to the filings of the second quarter of 2021, Falcon Edge Capital holds 196,676 shares in Microsoft Corporation, worth $53 million.
Sea Limited (NYSE:SE) is based in Singapore and provides its services in digital entertainment, e-commerce, and fintech in Asia, Latin America, and internationally. The company also has a gaming platform to provide access to mobile and PC online games. As of the second quarter of 2021, Falcon Edge Capital has 141,788 shares in the company, valued at $38.9 million.
Top 10 SPACs to Buy According to Richard Gerson’s Falcon Edge Capital
Our Methodology
This list has been compiled after analyzing the second quarter portfolio of Falcon Edge Capital. The special purpose acquisition companies are ranked on the basis of the value of the hedge fund’s holdings. We have also mentioned the total number of hedge funds having stakes in each company as tracked by Insider Monkey in the second quarter of 2021.
Why should we pay attention to hedge funds’ stock 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.
Top 10 SPACs to Buy According to Richard Gerson’s Falcon Edge Capital
10. Nextgen Acquisition Corp. II (NYSE:NGCA)
Falcon Edge Capital’s Stake Value: $14.103 million
Percent of Falcon Edge Capital’s Portfolio: 0.9%
Number of Hedge Fund Holders: 36
Nextgen Acquisition Corp. II (NYSE:NGCA) is based in Florida and was founded in 2020. The company operates as a special purpose acquisition company and focuses on mergers and asset acquisition with other companies. Patrick T. Ford is the CEO of the company.
Nextgen Acquisition Corp. II went public in March 2021 and raised around $382 million from the initial offering. The market capitalization of the company is $378 million. The company aims to acquire targets operating in the industrial, tech, and healthcare sectors.
On August 23, 2021, Nextgen Acquisition Corp. II signed a definitive agreement with Virgin Orbit. Virgin Orbit is aimed to launch small satellites. On the competition of the merger, the new entity is going to list as Virgin Orbit on Nasdaq under the ticker symbol “VORB.” The new entity is going to public with a valuation of $3.2 billion.
At the end of the second quarter of 2021, Falcon Edge Capital holds 1.37 million shares in Nextgen Acquisition Corp. II, worth $14.103 million. Nextgen Acquisition Corp. II accounts for 0.9% of the 13F portfolio. With this stake, Nextgen Acquisition Corp. II ranks tenth on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
As of Q2 2021, 36 hedge funds have stakes in Nextgen Acquisition Corp. II, worth $188 million.
9. Rabbit LEAP Ltd. (NYSE:LEAP)
Falcon Edge Capital’s Stake Value: $16.430 million
Percent of Falcon Edge Capital’s Portfolio: 1.04%
Number of Hedge Fund Holders: 28
Rabbit LEAP Ltd. (NYSE:LEAP) is based in California and was formed as a special purpose acquisition company to affect a merger, asset acquisition, or business combination. Incorporated in 2020, Meyer Malka Rais is the Chairman, Co-founder, and CEO of the company. Cynthia G. McAdam is the Co-founder and Chief Operating Officer.
Rabbit LEAP Ltd. went public in September 2020 and raised around $402 million through the initial offering. The market capitalization of the company is $422 million. The company is searching for target businesses operating in the fintech industry.
As of the second quarter of 2021, Falcon Edge Capital has 1.54 million shares in Rabbit LEAP Ltd., valued at $16.43 million. Rabbit LEAP Ltd. accounts for 1.04% of the 13F portfolio. With this stake, Rabbit LEAP Ltd. ranks ninth on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
Like Alphabet Inc., Microsoft Corporation, and Sea Limited, Rabbit LEAP Ltd. is one of the top stocks of Falcon Edge Capital.
8. Jaws Spitfire Acquisition Corporation (NYSE:SPFR)
Falcon Edge Capital’s Stake Value: $17.012 million
Percent of Falcon Edge Capital’s Portfolio: 1.08%
Number of Hedge Fund Holders: 3
Jaws Spitfire Acquisition Corporation (NYSE:SPFR) is a Florida-based company specializing in mergers and asset acquisition. Matthew Joseph Walters is the CEO of the company.
Jaws Spitfire Acquisition Corporation went public on December 03, 2020. The company has a market capitalization of around $344 million. Jaws Spitfire Acquisition Corporation targets mergers with companies in consumer tech industry.
On March 23, 2021, Jaws Spitfire Acquisition Corporation signed a definitive agreement to merge with VELO3D, a 3D printer manufacturing company. The deal is expected to complete in the second half of 2021. With the deal closed, the combined entity is expected to be valued at $1.6 billion.
At the end of the second quarter of 2021, Falcon Edge Capital holds 1.7 million shares in Jaws Spitfire Acquisition Corporation, worth $17.012 million. Jaws Spitfire Acquisition Corporation accounts for 1.08% of the 13F portfolio. With this stake, Spitfire Acquisition Corporation ranks eighth on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
As of Q2 20201, 3 hedge funds as tracked by Insider Monkey have stakes in Jaws Spitfire Acquisition Corporation, worth $4.538 million.
7. CF Finance Acquisition Corp. III (NASDAQ:CFACU)
Falcon Edge Capital’s Stake Value: $22.376 million
Percent of Falcon Edge Capital’s Portfolio: 1.42%
Number of Hedge Fund Holders: 1
CF Finance Acquisition Corp. III (NASDAQ:CFACU) is a New York-based special purpose acquisition company incorporated in 2016. It was founded for affecting mergers, assets acquisition, stock purchase, and reorganization. Cantor Fitzgerald is the primary sponsor of CF Finance Acquisition Corp. III.
On August 16, 2021, CF Finance Acquisition Corp. III closed the merger with AEye, Inc. to form a new entity AEye. Inc. and listed under ticker symbol “LIDR” on the Nasdaq.
AEye, Inc. (NASDAQ: LIDR) is the market leader in high-performance, adaptive, and next-generation LiDAR solutions for autonomous vehicles. The solutions include software, algorithms, and hardware. Before the merger, AEye, Inc. was valued at $1.52 billion. Now, the company has a market value of $1.19 billion.
As of the second quarter of 2021, Falcon Edge Capital holds 2.23 million shares of the company worth $22.376 million. CF Finance Acquisition Corp. III represents 1.42% of Falcon Edge Capital’s portfolio of 13F securities. With this, Finance Acquisition Corp. III ranks seventh on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
6. Frontier Acquisition Corp. (NASDAQ:FRONU)
Falcon Edge Capital’s Stake Value: $23.434 million
Percent of Falcon Edge Capital’s Portfolio: 1.49%
Number of Hedge Fund Holders: N/A
Frontier Acquisition Corp. (NASDAQ:FRONU), a special purpose acquisition company, is based in New York. The company was founded in 2021 and focuses on targeting new companies in healthcare tech and biotech sectors. But the company is open to opportunities in any country or industry. Christian Angermayer is the CEO and Director of the company.
Frontier Acquisition Corp. went public on October 03, 2021, and managed to raise $230 million from the initial public offering. The company is trading below the IPO price and still searching for targets. The market cap of Frontier Acquisition Corp.is $285.57 million.
As of the second quarter of 2021, Falcon Edge Capital holds 2.4 million shares of the company worth $23.434 million. Frontier Acquisition Corp. represents 1.49% of Falcon Edge Capital’s portfolio of 13F securities. With this, Frontier Acquisition Corp. ranks sixth on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
5. Soaring Eagle Acquisition Corp. (NASDAQ:SRNG)
Falcon Edge Capital’s Stake Value: $40.112 million
Percent of Falcon Edge Capital’s Portfolio: 2.56%
Number of Hedge Fund Holders: N/A
Soaring Eagle Acquisition Corp. (NASDAQ:SRNG) is a special purpose acquisition company incorporated in Caymen Island. It was founded by Harry E. Solan, Jeff Sagansky, and Eli Baker. In May 2021, Soaring Eagle Acquisition Corp. announced to merge its business with Ginkgo Bioworks. After the merger, the new entity resulted in Ginkgo Bioworks Holdings, Inc. and listed under ticker symbol “DNA” on New York Stock Exchange.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is based in Boston and provides services in the healthcare industry. The company develops a platform for cell programming, genetic modification, innovative therapeutics, and food ingredients.
4. Pioneer Merger Corp. (NASDAQ:PACXU)
Falcon Edge Capital’s Stake Value: $44.099 million
Percent of Falcon Edge Capital’s Portfolio: 2.81%
Number of Hedge Fund Holders: N/A
Pioneer Merger Corp. (NASDAQ:PACXU) is incorporated in Cayman Islands and works as a special purpose acquisition company for affecting a merger, asset acquisition, share purchase, and reorganization. The Chairman of the company is Jonathan Christodoro, and the CEO of Pioneer Merger Corp. is Ryan Khoury. The company is sponsored by Patriot Global Management and an affiliate of Falcon Edge Capital.
Pioneer Merger Corp. went public on January 07, 2021, and raised around $402 million by offering IPO. The company aims to acquire businesses with rapid growth potential. On May 27, 2021, the company signed a definitive agreement to merge with Acorns Grow Inc. in the second half of 2021.
Acorns Grow Inc. provides services in the fintech and investment industry and has more than 4 million customers on its mobile application, which are projected to increase to 10 million by 2025. Acorns Grow Inc. generated revenue of $71 million in 2020, increasing from $44 million the last year. Upon merger, the entity will go public with a value of around $2.2 billion.
As of the second quarter of 2021, Falcon Edge Capital holds 4.5 million shares of the company worth $44.099 million. Pioneer Merger Corp. represents 2.81% of Falcon Edge Capital’s portfolio of 13F securities. With this, Pioneer Merger Corp. ranks fourth on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
3. TPG Pace Tech Opportunities Corp. (NYSE:PACE)
Falcon Edge Capital’s Stake Value: $44.201 million
Percent of Falcon Edge Capital’s Portfolio: 2.82%
Number of Hedge Fund Holders: 31
TPG Pace Tech Opportunities Corp (NYSE:PACE) is one of many special purpose acquisition companies of TPG. The parent group TPG operates worldwide with offices in Beijing, Hong Kong, London, Fort Worth, and Luxemburg. TPG has more than $96 billion of assets under its management.
TPG Pace Tech Opportunities Corp went public in October 2020, raising around $450 million. TPG Pace Tech Opportunities Corp is focused on acquiring businesses in the tech industry.
On January 29, 2021, TPG Pace Tech Opportunities Corp signed a definitive agreement to acquire Nerdy Inc. On September 20, 2021, the business combination closed and the new entity began to trade as Nerdy Inc. (NYSE:NRDY). Nerdy Inc. (NYSE:NRDY) is an online learning platform with a curated gig economy. Founded in 2018, the platform acts as a platform to connect tutors to students.
As of the second quarter of 2021, Falcon Edge Capital has 4.45 million shares, valued at $44.201 million. TPG Pace Tech Opportunities Corp accounts for 2.82% of the 13F portfolio of Richard Gerson’s Falcon Edge Capital. With this, TPG Pace Tech Opportunities Corp ranks third on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
2. Equity Distribution Acquisition Corp. (NYSE:EQD)
Falcon Edge Capital’s Stake Value: $106 million
Percent of Falcon Edge Capital’s Portfolio: 11.52%
Number of Hedge Fund Holders: 62
Equity Distribution Acquisition (NYSE:EQD) was founded by Bill Galvin and Sam Zell and is focused on finding targets based in North America and operating in the industrial sector.
Equity Distribution Acquisition went public on September 16, 2020. Equity Distribution Acquisition is a medium-cap company with a market capitalization of $508.7 million. The company is still searching for target businesses with technology-based industrial solutions.
As of the second quarter of 2021, Falcon Edge Capital holds 5.34 million shares in Equity Distribution Acquisition valued at $52.652 million. These shares account for 3.36% of the 13F holdings of Falcon Edge Capital. With this, Equity Distribution Acquisition ranks second on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 33 have stakes in Equity Distribution Acquisition, worth $205.4 million. This number has increased from 32 in the Q1 of 2021, worth $215 million.
1. Avanti Acquisition Corp. (NYSE:AVAN)
Falcon Edge Capital’s Stake Value: $69.836 million
Percent of Falcon Edge Capital’s Portfolio: 4.46%
Number of Hedge Fund Holders: 30
Avanti Acquisition Corp. (NYSE:AVAN) is incorporated in Caymen Islands and functions as a special purpose acquisition company. The company intends to affect a merger, asset acquisition, share exchange, stock purchase, and reorganization.
Avanti Acquisition Corp. went public in October 2020 and raised $600 million from the initial public offering. The company has posted a net income of $1.263 million for Q2 2021. With its focus on family- and founder-led startups based in Europe, Avanti Acquisition Corp. aims to acquire businesses having strong US nexus and global reach.
As of the second quarter of 2021, Falcon Edge Capital holds 7.2 million shares worth $69.836 million in the company, making Avanti Acquisition Corp. the first on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital. These shares account for 4.46% of the hedge fund’s 13F holdings. With this, Avanti Acquisition Corp. ranks first on our list of top 10 SPACs to buy according to Richard Gerson’s Falcon Edge Capital.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 30 funds have stakes in Avanti Acquisition Corp., worth $335 million.
You can also take a peek at Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners and 10 Best Safe Dividend Stocks According to Billionaire Dan Loeb.
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- Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
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This article is originally published at Insider Monkey.
