Something an old boss told me once when I first started public investing and lost a lot of money on a position: "If you're not losing money somewhere in the portfolio, you're not taking enough risk." #spacs #spacsquad
2/ If you’re sweating every tick up or down in a position, you’re TOO BIG. #spacs #spacsquad
3/ SPAC asymmetry with $10 pre-merger floor is your best friend. A 30% move from $10 -> $13 is FAR superior than $45 -> $60. Risking $0 to make $3 way better than risking $35 to make $15. Always be cognizant of risk/reward. #spacs #spacsquad
4/ SPACs are event-driven trades rich in catalysts before merger closing. SPACs post merger become fundamental investments dependent on very different parameters (earnings, research coverage, lockup expiry, etc). Know the difference and adjust risk accordingly. #spacs #SpacSquad
5/ Ability to take advantage of SPAC asymmetry and event-driven catalysts coupled with COMPOUNDING is very powerful. Making 15-50% a trade and recycling that capital 4-8x a year is how you make outsized, unparalleled risk adjusted returns. #spacs #SpacSquad
6/ Never FOMO or regret missed trades. Your mental state is the most important thing when it comes to making trading decisions. Especially in this environment, there's always another new SPAC situation around the corner. #spacs #spacsquad
7/ Sizing? When you're in a SPAC near $10 floor (predeal or announced) that you like, SIZE THE F UP. You'll never have a better risk/reward. As the situation trades higher, your only move is to trim/sell. Never buy as it moves up. #spacs #spacsquad
8/ Hard to trim/sell as it moves up? You're a renter, not an owner of SPACs. Never fall in love with winners or marry a loser. Trim/sell your winners and it's ok to lock in a loss. Locking in losses can be a clearing event for your mind to get right footed. #spacs #spacsquad
9/ Concerned about record market valuations? Asymmetry of SPACS has you covered. When a market correction eventually does come, that pre-merger hard floor of $10 will be your best friend. You may experience a 10-20% drawdown, but if ur doing it right it'll be from a monster ATH.
10/ Another beautiful thing about SPACs is that you can use ones near $10 as cash alternatives that feature upside optionality. If there is a market correction, it's nice to be able to sell low price SPACs to take advantage of those dislocations. #spacs #SpacSquad
11/ NEVER be fully invested on margin. If you're using margin w/ SPACs, that's just being greedy and taking on unneeded risk. Maintain some margin/cash/low price SPACs as a credit line ready for times of dislocation. Sep/Oct 2020, GME-driven HF unwind, etc. #spacs #spacsquad
12/ In 2008/2009 several hedge funds ran large SPAC books on margin and when the liquidity crisis hit, they had to offload them at big discounts. RH raised margin requirements on SPACs in Sep 2020 causing a huge retail unwind. Be positioned to take advantage! #spac #spacsquad
13/ RISK MANAGEMENT: SPACs as an asset class are HIGHLY correlated. They all move together since the same hedge funds, retail investors, etc. all own some combination of the same names. There will be times of deleveraging / risk off, which is why point #11 is important!

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with anpanman

anpanman Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @spacanpanman

5 Jan
1/ $VSPR merger w/ Hydrafacial: Invest in the Leading Beauty Care Services Platform Positioned for Accretive M&A Growth and Post-COVID Reopening Demand

Thread Below @jimcramer @brentlsaunders @HydraFacial
2/ Hydrafacial offers one of the most popular facial skincare treatments across the world with an army of loyal mid and upper-class customers receiving regular treatments on a monthly basis at ~$200 / session. Image
3/ Skincare is a fast growing market (14% CAGR in US alone) with a worldwide TAM of +$200B.

Consumers have been shifting their expenditures from goods to experiences and have shown an increasing willingness to spend on high end beauty and health services. Image
Read 36 tweets
21 Dec 20
1/ $NPA merger w/ @AST_SpaceMobile: Invest in the Space Mobile Provider that Will Disrupt the Entire Wireless Industry.

A Different Perspective on What's Really at Stake. Thread Below. @jimcramer @ARKInvest @DJohnson_CPA @Mindwalletbody @SpacGuru @SpacBobby @JMacInvesting
2/ SpaceMobile ($NPA) has created the first and only patented protected, space-based cellular broadband network that can provide coverage across the entire globe.

Service is compatible with all +5B mobile phones in use today featuring 4G & 5G data speeds with low latency. Image
3/ Carriers that work with SpaceMobile will enjoy absolute and unparalleled cell coverage - a game changing advantage that will redefine the competitive landscape. Image
Read 25 tweets
13 Dec 20
$DMYD to merge w/ @GeniusSports - The Index for Sports Betting with Strong Tail Winds.

A thread.

@MarkLockeGSG @NiccoloDeMasi @spac_insider
1) Genius Sports is going public through a SPAC merger with $DMYD, which is led by @NiccoloDeMasi, the former CEO of Glu Mobile. The man has consummated +25 mergers and has a keen focus on gaming. His first SPAC, $DMYT is taking Rush Street Interactive, in the next two months.
2) Who is Genius Sports? It's one of 2 large sports data providers (duopoly) that works closely with leagues to collect and sell live game data to sportsbooks. This is incredibly important as live betting needs constantly updated stats to adjust prop bets and lines in real time.
Read 16 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!