Chamath Palihapitiya has been labeled the King of SPACs and it could be for good reason. On Friday, investors got an update from Palihapitiya on how his SPAC investments have performed since inception, in 2021 and during the past down week.
The Palihapitiya SPACs: Palihapitiya has plans to bring SPACs public with tickers IPOA to IPOZ. So far, six SPACs have launched under the Social Capital Hedosophia umbrella. Seven more recently filed their names with the SEC for future launches.
Here is a look at how the SPAC deals have performed:
Virgin Galactic (NYSE: SPCE) was the first SPAC deal completed by Palihapitiya. Shares of the space company are up 172.9% since the offering and up 15% in 2021.
Clover Health (NASDAQ: CLOV) offers Medicare Advantage plans. The company has been the worst performing of the Palihapitiya SPACs. Shares are down 21.6% since the offering of IPOC and down 53.2% in 2021.
Social Capital Hedosophia Holdings Corp IV (NYSE: IPOD) has not named a merger target yet. Shares of IPOD are up 23.2% since the offering and down 10% in 2021.
Social Capital Hedosophia Holdings Corp VI (NYSE: IPOF) has not named a merger target yet. Shares of the largest SPAC offering from Palihapitiya are up 22.9% since the offering and down 0.1% in 2021.
Related Link: 5 Things You Might Not Know About Chamath Palihapitiya
The PIPE Deals: Along with his own six SPACs, Palihapitiya has funded eight SPAC deals as a member of the PIPE (Private Investment in Public Equity — a way to attract investment from accredited investors).
MP Materials (NYSE: MP) is a rare earth mining company whose materials could be used to support electric vehicles and wind turbines in the future. Shares of MP Materials are up 291% since inception and up 21.5% in 2021.
Desktop Metal Inc (NYSE: DM) is a 3D printing company focused on additive manufacturing. Shares of Desktop Metal are up 57% since the offering and down 8.7% in 2021.
Revolution Acceleration Acquisition Corp (NASDAQ: RAAC) is taking Berkshire Grey public in a $2.7 billion deal. The company uses artificial intelligence for robotics and automation. Shares of the SPAC are up 8.4% since inception and up 8.4% in 2021.
Rough SPAC Week: The last week has been a rough one for SPACs, and Palihapitiya shared some lessons learned.
All of his six SPACs and eight PIPE deals had negative week-over-week performance, according to a tweet from Palihapitiya. The average loss was 14.3% week-over-week for the 14 SPACs Palihapitiya has been involved in.
The S&P 500 was up 0.8% on the week and the Invesco QQQ Trust (NASDAQ: QQQ) was down 1.7% for the week.
In early February, Palihapitiya shared an update on how his deals had performed. At that time, the average return was 47% in 2021 and an average lifetime gain of 137%.
The latest update shows an average return of 3.6% in 2021 for Palihapitiya’s 14 related SPACs. The lifetime average gain is now 60.9% on the 14 SPAC deals.
Disclosure: Author is long shares SPCE, IPOD, IPOF, RMGB and RAAC.
Photo by JD Lasica on Flickr.
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