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No. of Recommendations: 4
Although I've retired from active investing, like Mae West, I drift. SPAC Arbitrage is my new
hobby /experiment. I'm using it as an alt strategy for parking some cash. And like with the Carefree
port, I'm using money that won't sink my retirement or other financial goals if it goes to zero.

With these OT posts, I'll track my journey with SPAC arb.


SPAC Arbitrage is just a fancy term to describe another method Wall Street uses to separate you
from your savings. If you know nothing about SPACs or SPAC arbitrage, there's plenty of information
online that you can find by searching those terms.

To succeed at SPAC arb, you need discipline, effort, patience, and persistence -- things we prefer
to avoid here at Carefree. But what the heck.

Here's how it works for me.

1. Research sponsors pre-IPO. Look for people and organizations I'm familiar with, who have excelled
at deal making, have the experience and a network the target can exploit, and have the financial
wherewithal and connections to bridge the redemption gap and adverse circumstances. Most of all they
have integrity.

2. Buy at IPO or shortly thereafter. Only buy at par or below. Also, deal must include warrants.

3. Split the units into stock and warrants when they begin to trade separately.

4. If no deal after one year, sell. Otherwise, binary decision at deal time -- if the price is above
NAV, sell. Otherwise redeem, but vote for the deal.

5. Keep the warrants. The warrants are the vig. Expect they will expire worthless most of the time.

Current Holdings
SPGSU -- David Simon, Simon Property
TSPQU -- Joseph Shaposhnik, TCW
WPCAU -- Christopher Turner, Warburg Pincus
RXRAU -- Scott Rechler, RXR

Note: SPACS are risky, and a good way to lose all your money.

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