An Ashfield Conversation: Dissecting the SPAC Phenomenon

 

Special Purpose Acquisition Companies, more commonly referred to as “SPACs” or “Blank Check IPOs” have been around in present form since 2011. While SPACs may be nothing new, their sudden surge in popularity amongst companies and investors alike is certainly more novel.

In our new podcast episode, Ashfield Capital Partners Portfolio Manager Lyman Howard speaks with experienced financial writer Anna Wroblewska about this investing phenomenon and why they have been receiving such a vast amount of attention throughout the past year. During their conversation, Howard provides an overview on SPACs while also explaining important intricacies that may be useful to families who are considering incorporating them into their asset allocation mix.

Specifically, Howard and Wroblewska discuss:

• What a SPAC is and the characteristics that make them unique
• Why companies and investors are choosing SPACs instead of traditional IPOs
• Examples of recent SPACs and the companies they have merged with
• The pros and cons of investing in SPACs
• Ashfield Capital Partners’ overall view on SPACs and how the firm opens the door to non-traditional opportunities for its clients

Throughout the conversation, Howard emphasizes the importance of proceeding with caution when considering investing in SPACs, especially if you are anticipating an easy profit. Instead, he suggests selecting assets that demonstrate long-term profitability.

You can listen to Howard and Wroblewska’s entire conversation here.

 

 

 

This interview is for informational purposes only and may not be relied on in any manner as legal, tax, investment, accounting or other investment advice and does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any investment. Investing is inherently risky and investors should be aware that they may not receive a return equal to their initial investment and may lose their entire investment.

Information presented may constitute “forward-looking information.” Forward-looking information is based on numerous assumptions and is speculative in nature and may vary significantly from actual results. Past performance is not necessarily indicative of future results, and there can be no assurance that an investment will achieve comparable results in the future. The views expressed reflect the current opinions of Lyman Howard and may not be the opinions of Ashfield in general. Ashfield is an SEC registered investment adviser and registration does not imply any level of skill or training.