Mark Yusko: Are SPACs in a Bubble?

Published on
February 16th, 2021
Duration
61 minutes


Mark Yusko: Are SPACs in a Bubble?

The Interview ·
Featuring Mark W. Yusko and Ash Bennington

Published on: February 16th, 2021 • Duration: 61 minutes

What are SPACs? What role do they play in the current investment landscape? What opportunities do they offer investors? And, perhaps most importantly, are they in a bubble? Mark Yusko, CEO and CIO of Morgan Creek Capital Management, joins Real Vision senior editor Ash Bennington to answer these questions and more. Yusko argues that SPACs offer exposure to the growth areas of the future—from online gaming and e-sports to electric vehicles and space exploration—and that SPACs present the path forward for early-stage companies to go public. Yusko traces the different stages in the SPAC capital formation process, which includes pre-IPO, private investment in public equity (PIPE), and post-merger, and he depicts the various opportunities they offer investors, noting that many stages offer bond-like risk but equity-like returns. Yusko describes his latest venture, the Morgan Creek and EXOS Launch SPAC Originated ETF, which seeks to deploy active management and long-term holding periods as a way to navigate a promising space that is nevertheless frothy like so many other pockets of the market. Filmed on February 10, 2021.

Key learnings:
Yusko explains that SPACs are just a regulatory wrapping—saying that SPACs are in a bubble is like saying hedge funds are in a bubble. Yusko argues that SPACs offer exposure to the companies of the future and that, due to the dispersion between different SPACs, active management and diversification is the best way for investors to play the space.

Comments

Transcript

  • TJ
    Tracy J.
    26 February 2021 @ 13:09
    Great insights!
  • DD
    Dylan D.
    17 February 2021 @ 05:24
    So Yusko talks about great managers doubling up on their winners - and then he talks about equal weighting the SPACs every month.
    • DD
      Dylan D.
      17 February 2021 @ 05:30
      Having made the prior comment I still believe Yusko is a great guest - as long as you can get some pearls of wisdom from an interview - and you apply it - it is worth your time. This is worth your time.
    • AR
      Andres R.
      18 February 2021 @ 22:20
      He said he's old boss was incredibly good at dong that. he didn't say you should try...
  • AR
    Andres R.
    18 February 2021 @ 22:19
    Ash: you know what our secret is? We ask a question and we let the guest answer it Mark: ...answers are less important than good questions... ask good question to good people, that's where the magic happens. AMEN TO THAT! And that why I'm here everyday folks, appreciate every video and piece of content, you're all rockstars.
  • MI
    Mitchell I.
    18 February 2021 @ 19:53
    for the record, there are a ton of trophy fish in non-medal trout streams in Colorado... In my opinion, the fish in the Gold Medal waters have all been caught multiple times (catch and release) and are typically 'wise' fish, who can spot a hook a mile away.
  • JP
    John P.
    18 February 2021 @ 01:50
    I have a hard time believing Mark simply bought NKLA based only on loveing the industry and EV sector and then sold it based off a fraud report adhering strictly to technicals. At face that behavior is about the investment depth of analysis of your average internet retail investor. NKLA was an obvious fraud very early into it. Toyota and Honda have been dumping capex into hydrogen for years without remotely coming close to the developmental breakthrough NKLA was claiming. They literally named their company in the same manor that tesla did to piggy back off the same pump game. There is no way a fund as big as Morgan Creek didn't know this going into it. That being said, godspeed Mark. Parts of the spac sector will be a great place to go value hunting if this all blows over. Keep pumping Bitcoin.
  • RT
    Robert T.
    16 February 2021 @ 21:21
    This guy veers off track when he starts fawning over celebrities and rappers, and notably, his ETF product is a "You take the risk, I'll take the guaranteed fee" situation. He comes off as if his wealth has pushed him into la-la land thinking, which is the the same vibe I get from Chamath.
    • SD
      Steve D.
      17 February 2021 @ 19:13
      Could not agree more. I used to follow him and in a quarterly missive from 4Q16 he was hyper-bearish about valuations, etc. He actually quoted Babson's 10 Commandments of investing: Keep speculation and investments separate; Don't be fooled by a name; Be wary of new promotions; Don't buy without proper facts. You get the point. I have to assume that wasn't paying the bills and it's more lucrative short-term to do a 180. What a shyster (I think that's the term).
  • IM
    Indranath M.
    17 February 2021 @ 17:22
    Very entertaining and educational. Thank you!
  • GB
    Gary B.
    17 February 2021 @ 14:52
    This was great. I love how positive Mark is about everything. RALF is next level advice.
  • CB
    Clifford B.
    16 February 2021 @ 06:59
    Great discussion gents . Fyi, NKLA has the best gravity powered trucks on the market. Lll
    • AM
      Alonso M.
      16 February 2021 @ 15:56
      Rumor has it they're going to market it as their Flintstones model.
    • CB
      Clifford B.
      17 February 2021 @ 12:11
      @Alonso M. fully equipped with loin cloth and soft top lol.
  • BJ
    Brandon J.
    17 February 2021 @ 05:29
    Great interview. I don't understand all the hate below.
  • VW
    Vic W.
    17 February 2021 @ 04:53
    Glad to hear Mark is just as a basketball nerd as I am. :) Great conversation. Love it. Keep it coming.
  • DG
    David G.
    17 February 2021 @ 03:14
    I'm glad I watched this one.
  • MP
    Michael P.
    17 February 2021 @ 01:17
    Yusko and Chamath have fallen in love with themselves. Way too much face time in the media for these guys. I guess money will do that.
  • NC
    N C.
    16 February 2021 @ 21:24
    SPXZ 27.13. Can't wait to see the 3 yr performance.
  • RM
    Robert M.
    16 February 2021 @ 21:14
    Watch if you are interested in a one hour infomercial on Mark's SPAC fund. He is an interesting guy, but that is the takeaway today.
  • TP
    Timothy P.
    16 February 2021 @ 18:22
    Mark Yusko gets the convexity of crypto investment. One of the few that I've seen on here that truly do.
  • SR
    Samhit R.
    16 February 2021 @ 17:38
    Mark entertains with wisdom.
  • JJ
    Jay J.
    16 February 2021 @ 15:44
    always liked mark, some of his older content on RV is among my favorite, but I can't get w/ chamspac the scam promoter or anything he's involved in.
  • PB
    Patrick B.
    16 February 2021 @ 12:39
    Can someone please help explain for an absolute amateur -- Let's say I invest $100k in a $500mil SPAC (no warrants attached) If they make an acquisition of $2bil and the extra $1.5bil is financed through PIPE... My overall stake in the IPO would be $100k/$2bil? Any resources on the basics of SPACs would be appreciated Thanks!