ALIT - Cannae Holdings: SPAC Bloodbath Provides A Good Entry Point
- Cannae Holdings is a holdings company founded and led by Bill Foley, a billionaire and West Point graduate with a long history of creating value for shareholders.
- CNNE is currently heavily invested in SPACs and post-SPAC companies. This has created a large discount between the market price and a "sum of the parts" valuation of the underlying.
- Owning CNNE is better than just owning a SPAC ETF, because you gain access to SPAC founder shares and an active management that has a good track record.
- My fair value estimate for CNNE is currently around $50, but that can go considerably higher if the underlying portfolio companies perform well and SPACs regain popularity in the market.
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Cannae Holdings: SPAC Bloodbath Provides A Good Entry Point