Why I'm Cutting My Losses and Moving On From This SPAC
When the boom of special purpose acquisition companies was in full swing in late 2020 and early 2021, it was obvious that the market was becoming saturated and not all of the hundreds of blank-check companies would find deals. And of those that did find acquisition targets, not all of them would be worth investing in.
That's why I initially added Pershing Square Tontine Holdings (NYSE: PSTH) to my portfolio. For one thing, its size put it in a class by itself. Its $4 billion war chest meant it could pursue targets that none of the hundreds of others could. Early speculation was pointing toward fintech giant Stripe as a potential target. And, with billionaire investor Bill Ackman at the helm and an investor-friendly "tontine" warrant structure, it seemed like a good place to park some capital.
However, to call the past couple of months a disappointment would be an understatement. After the latest shareholder letter from Ackman, I'm preparing to cut my losses and put my capital to better use elsewhere.
Source Fool.com
