Einhorn Hedge Fund Dumps Shares of Tremendous Team SPAC

Posted on: August 16, 2021, 10:00h. 

Very last up to date on: August 16, 2021, 10:00h.

Greenlight Funds, the hedge fund run by financier and poker player David Einhorn, offered its stake in special function acquisition enterprise (SPAC) Sporting activities Amusement Acquisition Corp. (NYSE:SEAH) in the 2nd quarter.

Einhorn Betway
Greenlight Cash founder David Einhorn at the Planet Sequence of Poker. His hedge fund marketed shares in the SPAC bringing Super Group public. (Graphic: Institutional Investor)

Sporting activities Amusement is serving as the vehicle by way of which Tremendous Group, the father or mother organization of global on-line athletics betting operator Betway, will go general public. The parties announced a merger with a pre-equity valuation of $4.75 billion in April.

In a 13F submitting with the Securities and Trade Commission (SEC), Greenlight uncovered it liquidated its situation in the blank-examine firm at some stage for the duration of the June quarter, but the filing does not specify when that sale happened so it’s not clear if Einhorn’s hedge fund held shares into the Tremendous Team merger announcement or if it was out prior to that news getting to be community.

Expert investors, which include hedge cash these kinds of as Greenlight, are necessary by legislation to disclose holdings within just 45 days of the conclude of the prior quarter.

Einhorn May well Have Modestly Cashed in on Sports Entertainment

While the SPAC remains energetic, which include in the gaming business, share rates cooled off substantially as marketplace members questioned the sweetheart mother nature of these discounts for blank-check out sponsors and the bitter performances of a lot of de-SPACed businesses.

In the situation of Sports Entertainment Acquisition, that bank-test stock was investing all around $9.80 when the Super Team merger was announced. The stock subsequently ran to its superior of $10.85 and progressively traded decreased from there, closing at $9.91 on Monday. Based on when Greenlight purchased the stock, it seems probable the hedge fund created a modest revenue on the trade.

At the time the offer was declared and with the aforementioned a pre-equity valuation of $4.75 billion, Tremendous Group’s merger with Athletics Leisure signifies a person of the most significant combos to day concerning a SPAC and a gaming firm.

Betway has industry obtain to 10 states, together with powerhouse sports wagering marketplaces these as Colorado, Indiana, Iowa, New Jersey, and Pennsylvania.

Einhorn Maintains SPAC, Gaming Exposure

Although Sports activities Leisure Acquisition is no more time portion of the Greenlight portfolio, Einhorn’s hedge fund however has publicity to gaming equities and organizations that arrived to market through blank-check out transactions.

For illustration, 1 of the fund’s new positions is Playboy Team (NASDAQ:PLBY), which came community all over again previously this year subsequent a merger with a SPAC. Playboy has some gaming publicity and is mentioned to be fascinated in extra promotions in the market.

Greenlight also owns stakes in athletics betting knowledge provider Genius Athletics (NYSE:GENI) — yet another de-SPACed business — and streaming support service provider fuboTV (NYSE:FUBO). Einhorn’s hedge fund was an early trader in fuboTV and is bullish on the company’s potential customers as they relate to the nonetheless nascent in-activity betting current market.

Greenlight also retains a position in social on line casino developer Playstudios (NASDAQ:MYPS), which went community in June adhering to a SPAC transaction.