Out of More Than 400 SPACs Searching for Targets, Here Are the 5 I'm Most Confident In

As of this writing, there are 435 special purpose acquisition companies, or SPACs, sitting on billions of dollars in cash and searching for private businesses to take public. Not all of them will succeed. And of those that do find acquisition targets, not all will end up producing strong returns for their investors. It's easy to forget, given the recent IPO market, but newly public companies don't always go up.

An investment in a pre-deal SPAC is a bet on management's ability to leverage their resources, experience, and capital allocation skills to find a great opportunity. And it's because of the track records and connections of their sponsors that I hold these five pre-deal "blank-check" companies in my own portfolio.

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Source Fool.com