SPAC investing: CIO explains low-risk arbitrage strategy, IPOs to watch - Business Insider

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Julian Klymochko wakes up at 4:30 a.m. to manage an ETF that seeks to profit from the SPAC boom. The investing chief breaks down how the strategy works, and shares 2 new SPACs on his radar

AccelerateJulian Klymochko is the CEO and CIO of Accelerate Financial Technologies, which offers various hedge fund and private equity strategies in the ETF format. which trades on the Toronto Stock Exchange under the ticker ARB.

"Sometimes I work straight until 10 o'clock at night," he said. "During busy times like these, 15-hour days are not out of the question." "The key aspect of SPACs is they raise capital typically at $10 per unit and then IPO. That unit consists of common shares and warrants," he said. "The SPACs generally have two years to get a business combination completed. And if they don't, then the worst-case scenario is they give you your money back plus accrued interest."

"Even if you do redeem, you can hold on to those warrants and those warrants have significant value," he said. "So even in the instance where the deal is not attractive, you can still make a very high return because these warrants are generally worth 7% or 8% of your purchase price."

 

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JulianKlymochko Maybe he could sleep in if ia_updates was more cooperative? Still waiting to buy :(

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