NKLA - SPAC party may come to end soon hedge fund manager warns

The SPAC frenzy that has swept the market may be abruptly coming to an end, potentially in the next few weeks, according a hedge fund manager.With the IPOX SPAC index down more than 13% over the past week, the signs of trouble in SPACland appear to be rising."If this continues for another week or two, the SPAC market is dead," Orso Partners co-founder Nate Koppikar told Institutional Investor magazine in interview.Koppikar warns SPAC valuations have been rising to outlandish levels because of lax disclosure requirements for these blank-check companies that he considers some as "pump and dumps.""When people buy into SPACS, they're often buying incredibly overvalued companies," Koppikar told the publication.Koppikar said that venture capital firms and PE funds are "sitting on companies they could not sell" and SPACs are the vehicles they are using to exit these companies.Just this week Michael Klein's Churchill Capital IV (CCIV), which had risen

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SPAC party may come to end soon, hedge fund manager warns