Monetary Matters with Jack Farley SPACs Are Booming but Are We Back in Bubble Territory? | Louis Camhi of RLH Capital
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Jul 22, 2025 Louis Camhi, Founder and CIO of RLH Capital, specializes in SPAC investments and takes listeners through the SPAC resurgence of 2025. He dispels myths about SPAC risks and contrasts today’s market with the frenzy of 2021. Camhi shares his investment strategies, focusing on thematic trends and unique opportunities like bridge loans through SPVs. He also discusses volatility in low float stocks and how current political climates impact SPAC dynamics, providing insights on navigating this evolving landscape.
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SPAC Trust Floor Explained
- SPACs trade near trust value pre-deal, offering downside protection with optional upside.
- Post-deal, SPAC equity behaves like typical stock with higher risk and reward.
Manage SPAC Leverage Risks
- Avoid owning SPACs trading above trust on leverage due to skewed risk-reward.
- Reduce position size if SPAC price rises above trust value to protect downside.
SPAC Investor Handoff
- SPAC investors (arbitrageurs) sell post-announcement to fundamental investors who value the company's true worth.
- This handoff validates the deal and boosts SPAC credibility when functioning well.