The media has continued to paint Special Purpose Acquisition Companies (“SPACs”) in an unfavorable light by highlighting the negative returns of post-merger SPACs. What they fail to report on; however, is the outperformance and positive returns that have been generated by the pre-merger SPAC universe (those SPACs that have yet to complete a deal). Pre-merger SPACs behave like a short duration bond with capital appreciation upside potential and serve as a compelling compliment to traditional fixed income strategies.

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