NEW YORK- A number of well-known US hedge funds bought value stocks and blank-check acquisition companies, selling some winners from the technology-led stock rally as bond yields rose during the first quarter, filings released on Monday showed.
Special-purpose acquisition companies, known as SPACs, proved popular among hedge fund managers, with funds such as Third Point and Saschem Head adding shares of SPACs, including FinTech Acquisition Corp V and healthcare company Orion Acquisition Corp to their portfolios.
Tiger Global added shares of Revolution Healthcare Acquisition Corp and Soaring Eagle Acquistion Corp and trimmed its position in Facebook Inc.
Activist investor Starboard Value invested in a string of other so-called SPACS that exist to buy private companies and take them public, including Montes Archimedes Acquisition Corp, Altimar Acquisition Corp, Churchill Capital Corp II and Forest Road Acquisition Corp.
Over 400 SPACs have listed their shares since the start of 2021, though the majority are underperforming the broad stock market, a Reuters analysisshowed.
At the same time, several hedge funds added to financial, energy and consumer companies. Third Point added a new position in Carvana Co and Uber Technologies Inc, while Epoch Investment Partners added new positions in energy firms such as Exxon Mobil Corp, Pioneer Natural Resources Co and Diamondback Energy Inc.
