The Next Hedge Fund Scandal

[@PBoyle]

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird,Cab1260, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, A Smith, Callum McLean, Oscar, Simon Pena, Alexander E F, Cyrus Yari, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Ki Ryu Chan, Pjotr Bekkering, Drew, Ivaylo Kunev, Alex, Robert W Proudfoot, EatEmAll, Michael Boensel, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Mathews Sebonego, Sebastian, Michal Lacko, Yann M, VicMR, Peter Bočan, Michael Pierce, V Jordan, Steve Kinnear, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Cogitecture, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Sunny, Carlos Figuera, Peter Pomelov, Mitchell Rowton, Pedro Texeira, EV Bike Dude, Luis Quintino, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, Steven MIller, easy boekhouding, Albert, Ness Jung, Kent_Kinky, Oisin Quinn, Daniel Cervini, Wilson Hammer, luke ward, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Leszek Frankowski, Gerard Scott Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, Luis Torres, Smith Vilcapoma, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Hunter Lofgren, Justas Juškevičius, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Johan Levin, Morgan Brown, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida and Yoshinao Kumagai

[@jeffshackleford3152]

How do individual investors get the SPAC units? (the ones the hedge funds get)

[@jeffshackleford3152]

I have a few questions: 1. From your video about portfolio management risk vs returns on the sideways U shaped graph where we drew the tangent line to the point of best risk/reward, and used bonds to fill the extra capital, do SPACs essentially function as a replacement for that with the added upside of the warrants? (I think you had said T bills were the asset used to make the tangent line in that video) 2. If I was to have a pop in price and lock in my gains with a synthetic short position against the warrants and my shares, if the deal fell through, what would happen? Thank you for your time, Jeff

[@EnHacore1]

Patrick, I enjoyed this video, but I got lost in the big picture. I think adding some more graphics to the videos would be much better. You could even use a white board or a digital pen to draw the actors involved, the workflow, etc,just like being in a classroom. It would add great value and make it easier to understand than just talking in front of the camera

[@brettmoore3194]

Call it what is really is crimes against humanity

[@ChengTeoh]

You know that the Hedge Funds are just having a bit of fun with the retail investors when they start giving ETFs names like MOON & FOMO.

[@Ataraxia_Atom]

YOLO always made me laugh

[@FVCK-]

@@Ataraxia_Atom isn’t YOLO a weed ETF as well lol? That’s just insult to injury lol. I did on the other hand, name my own portfolio $REKD

[@Ataraxia_Atom]

@@FVCK- sure is. So funny

[@dillonseals6574]

this is some obscure humor and I love it

[@Itsgonnabeok4]

RKT 🚀

[@veretindale5314]

I love how you never overtly called Chamath a POS, but I left knowing that Chamath is, in fact, a POS :) God bless British sensibilities.

[@ear4funk814]

Patrick, you are one of the rare "true values" on the internet. Only a handful of KZbinrs share information that may help you the viewer in finance Thanks for what you do!

[@reggie3819]

I have friends that need to watch this but they won't listen

[@artvinnd5534]

Some people are ignorant by choice. Usually the same people who blame others for their failures.

[@frenchbarkley5622]

Same

[@angrybird7324]

@@artvinnd5534 Some people are ignorant because they think they know everything already. Then they fail miserably and blame others cauz it's impossible they themselves failed as they are so good at everything. That's called narcistic personality disorder... and everytime i see one go down in flame it feels great lol.

[@djeejah]

some people don't understand the difference between listen and HEAR makes a difference

[@jpbrindamour5467]

Are you talking about corona or spacs?! 🤣🤣🤣🤣

[@jimbo573]

"Lucid is just Tesla spelled backwards." My sides. I came for the financial education and stayed for the drier-than-the-Sahara humour.

[@improcrastinating8063]

Dicul. Like pickle. But dick.

[@tristanzurox8598]

@@dixztube Well at least you are a good grandson.

[@Football__Junkie]

“It reminds me of the mutual fund scandal of 2003.... and interestingly enough, some of the same people are involved today” 😂 that’s all you need to know right there

[@stocktawk]

Mad props for posting a big explanation in the description. Meaning You’re not doing clickbait BS- and thank you for being authentic. Subscribed and upvoted

[@mbg9650]

"For the SPAC scheme to work, there must be a sucker at the poker table." Indeed.

[@noahof-stuff9151]

Wall St. sold privatization to governments around the world as a better way to do business. As soon as our utilities were handed to them, they began gouging our utility bills and continue to this day. That is what Wall St. means by business. Obviously, ownership is the true way to make money in any economy, no matter what others may say. When my state gov. owned our utilities, they were answerable to us, the electorate. And did they perform. We had plentiful cheap power and gas. Now owned by Wall St. many families can no longer afford these essential services. Not to mention the gas shortages and power blackouts. All this from a country that boasts the worlds biggest gas reserves and other natural asserts. Damned if you do or damned if you don't I guess. Doing business with Wall St. is like having a gun put to your head. Gordon Gecko was right, so start buying any distressed assets available for cents in the dollar. Even just enough for a bit of leverage and it won't be long till your the king of your street ! In business ownership is everything.

[@raylopez99]

@@noahof-stuff9151 Greed is good...

[@alcapony732]

A whole lot of suckers in the market lately. So much federal money floating around ,no wonder the snake oil salesman are creating tons of spacs.

[@marynollaig4124]

It looks to me like SPAC are just a way to get round regulations introduced after the 2008 collapse.

[@surething119]

Every video mister, you manage to blow my mind with on point insider type information and ironic smart jokes. I am here everyday. Thanks for the value. I am looking forward to get your books soon!

[@asdwaetd]

this guys humor is drier than ben shapiro's wife, love it

[@Football__Junkie]

😂 I saw that on Twitter

[@gulag8735]

That's Irish humour at it's best.

[@JimmyDeLocke]

He is hilarious. That deadpan delivery coupled with the acerbic sarcasm.

[@KingOfMadCows]

Hey, I'm starting to think that all the pundits and youtubers promoting these SPAC's might not have their audience's best financial interests in mind.

[@pascalladal8125]

Hahaha good one XD

[@wesolowskimatt]

No shit...😏

[@compositeoperator3279]

Careful, Chamath might be watching.....

[@marcellothefellow]

Its all a scam.

[@tgd02]

maybe, maybe

[@cosmiccoffee8497]

Content is gold as always. Also, best dressed finance KZbinr hands down.

[@pascalladal8125]

I know right! He's dressed like a con-man but his content is betraying him.

[@timelesstechwatches]

@@pascalladal8125 *hitman

[@BerriBerriJam]

And his wit is dry as good whisky

[@rickymherbert2899]

@@pascalladal8125 If he was dressed as a con man there would be gold bangles, watch and bling on show to convince the sheep he had done wellwhilst having their best interests at heart. I'd actually go as far as to say his dress sense is that of an honourable man. A very knowledgeable one too/ Who manages to share that information in a way even I can understand and I have trouble shorting/levering my monthly household budget. 😄

[@MarksmanSpecialist]

Yes Papa, I understand the game now. The one who creates the game are most likely the scheming winners.

[@persuasionpsycho3384]

Hehehe also the one who creates the market are the winners, like who ownes the casino is a sure winner.

[@GaryARahn]

Excellent analysis. I hope people are paying attention.

[@lfsantosl]

Well, I guess we can all agree they aren’t

[@evilinside6327]

It is very refreshing to see some good old common sense when it comes to talking about investing. That is what I subscribed for, Patrick.

[@sachacfc]

Great video, so glad there's an academic who's taking their time to educate retail investors so they don't get burnt. You must be incredibly busy but you're doing a great thing ! Thanks a lot !

[@capestreasuresPtown]

Cheers to you for so eloquently expressing what I speak in exclamatory tones tword my dog and cats while I toil alone in my eCommerce home office. They just want to know when treats and walkies are coming, not when SPACS are due to collapse. Thanks to Tom Nash for turning me on to you.

[@hume1234561]

I'm so glad I found this channel.

[@paternoaparente2196]

The jokes and the memes are getting spicier and spicier as the videos go. I went from a subscriber to a notifications gang.

[@dabd8175]

Ty 47, well done 👏

[@T.K.KIRKLAND.]

Lmfao

[@thomas.02]

i read that in Diana's voice too

[@michaeltedeschi9929]

The best finance channel on KZbin... thank you Patrick

[@maestrovso]

I disagree. Patrick fails big time for providing no advices to risk free investments. The poor viewing stats tells it all. Unsubscribed!

[@peterhaberlehner6749]

I can't stress enough how good this video was! Thanks Mr. Boyle

[@AnnikaOBrien]

You and Bill Ackman are my favorite villains in the world of finance!

[@rameshhansaravendra]

Ackman also has a few spacs of his own.

[@eeekkk34235]

Excellent video! I looked into SPACs myself early this year and it quickly became apparent that in the medium to long-term (mostly retail) investors lose on SPACS and take the lions share of the risk after IPO. Money is mostly made by insiders who are virtually guaranteed to win because of the structure of these deals.

[@johnnyboyzZ]

Thanks for making sense of this mess for us.

[@wtfisthis451]

I read this paper before you uploaded, then see new video on same paper, would not have been possible without you leaving these important research links on all your other videos, I have a list of research paper to read. Just want to say thank you for providing links to these references, saves so much time.

[@benlamprecht6414]

You Sir, are a Scholar and a Gentleman. Thanks very much for your no-holds barred insights

[@jamesy3851]

"Lucid motors, which I think is just Tesla spelled backwards." You kill me and I love it!

[@myes344]

Is backward tsla a good stonk?

[@BerriBerriJam]

THE most succinct description of Lucid motors ever.

[@santanagamingcinema]

Is Lucid a good stock to invest in? I'm very new to all this and am lost to be honest.

[@TheJackb45]

Was looking up spacs today and found tattooed chef that is selling frozen veg at 10 dollars for 12 oz and I'm sure the investor's think the consumer is the idiot at that table

[@daciefusjones8128]

but those are the veggies with THC in them. I buy them at costco and you get 6 12 oz. packs for that price. disclaimer I hold costco stock.

[@cyclopsvision6370]

P.T. Barnum is right, a sucker is born every minute

[@Custodian123]

This information is excellent. No filler, straight to the point.

[@DavidYoung81]

You know something is up when there's so much hype! Thanks Patrick!

[@Predictbauer]

I'm sure you have gotten this already, but man hearing some old school British humor is a breath of fresh air, not to mention the SOLID break downs. Will become a patreon once I sell my Lucid SPAC..

[@richardb7726]

hamburglar, meatloaf references, finance, pointing out people are being mugged..yep a perfect video. Great, keep up the good work

[@doug4764]

Thank you for such an understandable explanation! Your students are fortunate to have a professor like you.

[@gustavobuquera]

I've read somewhere that all bubbles that ever happened had in common that they all used some new, and not yet very understood, financial product.

[@nonamernobrainer846]

"which I think is just tesla spelled backwards" This guy, I swear to God 😂

[@jamesy3851]

I was just about to comment this!

[@gungadin1389]

Meatloaf joke was good too. Youngsters probably didnt get it

[@sdprz7893]

@@gungadin1389 I didn't can someone explain it to me

[@gungadin1389]

@@sdprz7893 its a song 2 out 3 aint bad. Meatloaf is a singer. Google

[@chidi8415]

@@gungadin1389 I think he meant the tesla joke, I also didn't get it. If you could explain it that would be great 👍

[@ddosan4108]

I have a small amount on this table myself. I'm not an hedge fund. I'm not a Spac sponsor. ... I can't see the sucker ... Thanks for the amazing content. As always.

[@francescoc8644]

That's the best explanation of SPACs I've ever heard. Thank you. There are some occasions where companies don't drop much after the merger, like DMTK for instance or MP. I'm assuming that these companies are considered very valuable by institutions. Certainly hoping so as I'm invested in both :) Anyway, guess I still prefer SPACs over regular IPOs, so that at least retail investors get the chance to buy at a price near the floor.

[@jamesgrace1934]

Amen, thank you for your service sir.

[@nickush7512]

Very clear, concise and easy to learn from educational material. Thank you.

[@junglers]

Love your videos. Especially the more practical ones explaining how Wall Street works. Keep it up, man!

[@ButterNutter37]

Thank you so much for this education. Your presentation and tempo were fantastic. Subscribed!

[@Veteran_Nerd]

Love the shade directed towards NKLA 🤣🤣

[@jimdavis6824]

Once again Patrick, you're the smartest man in the room.I left the retail part of this business because I value my clients money more important than my own. O2b fifty years younger in a day when my thought process was really valued. People don't realize the difference between a gambler and a risk taker. If I invest tank Rand and the equity moves against me eight or nine percent,I sell it I bought it wrong and they move on.if you're playing craps or will that door whatever and you play downtown Grand and you lose, you get nothing and like it... Much like Spaulding from Caddy Shack. Always do your homework people... Always. JD

[@maximmatkovsky6490]

Thank you very much for the video. Not surprised to see Chamath as face of Spacs. His Tsia stock was weird, as it was superflat for two months and then videos appeared and price suddenly went up to go back to usual. His clover was selling medical insurance but he claimed it as techno company (i guess having website is enough to justify it), which Chamath promoted heavily (after it being flat) prices went up, then all went south. Both stocks were with either Hindenburg research accusing of wrongdoing (cliv) or law firm looking for feduciary duty breach (tsia). Meanwhile, guy applied for two more Spacs. Each time he claims it being market leader in future or 100 billion dollar market, but he sells.

[@joshybloshy3943]

I saw you on Coffeezilla and love your dry no fluff delivery of information! Thank you so much for the content.

[@VadimPlisko]

Thank you Patrick, you rocking as always. Much appreciate!

[@robertbelton7635]

Brilliant and very easy to understand ! Pump and Dump ..and the bag holders are left confused and dazed ..Thanks for the update

[@robertbelton7635]

@@bushlang5473 is the Tantain investment club still going on in Fairview too.. best investment I never made ! Do you also teach grannies how to suck eggs as well ..

Eye opening! Thank you Patrick.

[@gallashaw6]

Nattily dressed, dry humor, great interesting info, this guy is a gem. learning a lot from you professor, thanks

[@aaronmarko]

Wow. That's...absolutely terrible but it makes sense now why hedges would be hyping these sorts of investments.

[@CristianHernandez-312]

Patrick, we needed this video a few months ago lol that explains a lot about PSTH and AJAX amd GHIV. Great content, appreciate it!!

[@honestlyidk702]

Yeah got out of Ajax early but PSTH seems to be the exception here no founders shares so there isn’t much compensation for them. Bill also seemed to put Pershing’s fund into this too, risking a major fund with investors who seem to trust him very well. Seems like PSTH really is the only one that comes out different here

[@johnguillett1059]

Wow last time I was this early LTCM was still around.

[@johnmarkson9773]

Bitcoin is the future invest in Bitcoin now with a professional broker and see your life change financially

[@shelderevanston5864]

My first me profit of over $ 20,000 and ever since I have been with him

[@shelderevanston5864]

This man has really made name for himself. His success story is everywhere

[@johnguillett1059]

@@DumbledoreMcCracken lol not what I honestly expected.

[@florianjager5534]

I'm absolutely here for his gradual transformation into a comedian

[@wesolowskimatt]

Me to

[@TheMountainBeyondTheWoods]

@@wesolowskimatt me thre

[@EngineerFormidable]

@florian Jäger this guy actually is explaining something you are too dumb to even understand. Keep your snide comments in your pocket and move along!

[@IncredibleIceCastle]

Reminds me of Dr. Grande’s progression

[@namopmoopa9491]

This is the british equivalent of jim cramer, its all class and good humour

[@stephancote4745]

For others who might not know some warrants have different exercise prices and recall terms.

[@rameshhansaravendra]

One of the best channels on youtube.

[@JosueExplores]

Last time I was this early GME was still at $420.69

[@jeromecourdacy4603]

tille go back up there dw :)

[@wallstruss9763]

Thank you Patrick for the great explanation and content on the latest trend in investing...

[@ninefates9882]

High quality content. Thanks once again. Does anyone have some visuals on how these funds/warrants/bonds move around between the actors over time? It's quite complex stuff, lol.

[@malachi4040]

You earned a like and a sub. Lobe the dry humor and excellent breakdown

[@christophmahler]

*Transaction fees* were already the main income of several overseas investment and railroad construction schemes in the 19th century - whether railroads were built, partially failed due to 'insufficient national debt' or inevitably triggered major conflict (e.g. Berlin-Baghdad) was irrelevant, fees were paid...

[@xXAnthony619Xx]

Wowwww! I didn't know anything about this. Thanks for the knowledge my friend!

[@VilliamGaming]

is George Costanza naming these SPACs??? “I’ve got the perfect name.... Seven!”

[@ainnelrosirrosias3338]

The double dipper

[@احمدالعربي-و2ط7ي]

The today system of finance is totally corrupt and criminal. central banks keep the resuscitation of this tragedy.

[@franciscoknower5756]

Thanks Patrick just got a mail from ETORO who are using the amazingly named Corp V for their SPAC

[@Gumardee_coins_and_banknotes]

In Australia the Comm bank was raising capital with $100 pre shares, their current value is $85 since 2014 and is unlikely to reach $100 for a long time lol. Suckers.

[@jonashansen6391]

12 minute video concluding that retail investors probably get a bad deal, followed by an eToro ad. Thanks algorithm :)

[@ristekostadinov2820]

When you are investing/speculating on SPACs, you are better off buying 30% out of the money call options with 6-7 months expiration date and make money from the pumper dumper boys like Chamath than buying shares.

[@user-ze4ih5ii3c]

or puts a year out =D

[@nayaknaresh]

Has Chamath sold any of his SPAC’s outside of SPCE?

[@brendansherry8737]

@@nayaknaresh No, most of his spacs are ok deals. MP was probably his best idea. Probably the only spac that is already profitable.

[@fityfive]

Patrick, you really Boyle it down. Thanks!

[@robertplatt643]

If the founder holds on and has only 10 or 20 percent of the company, they effectively continue to control the board. This is why a purchase of only a few percent of outstanding shares will trigger an SEC filing requirement. A control premium for a corporate board merely requires you own more than any entity competing for board control. Enron also shows us that side deals could lard the company up with participations in spinoffs which siphon away value from the company.

[@eriklofgren9087]

First video I’ve watched, really good work!

[@Angel-bf5oy]

Read that paper you are referencing. It states that the hedge funds make majority of their returns from the warrants they hold. How is this possible since most of the companies trade down 12 months after the merger? Is it because the few companies that are successful account for most of the warrant returns?

[@Galaxyfe]

Awesome vid. Thank you Patrick! What's the mutual fund scandal u mentioned?

[@cameronmmj9291]

Would a reasonable speculative strategy be to short these pumps after the initial SPAC IPO hype wears off?

[@tgd02]

Thats what ive been doing...

[@ThreePuttBogeys88]

I got into CVII at 10.99, 10% downside is something I can stomach if all falls through! 🤞🏾

[@qwaszxerdfcvtyghvb]

7:00 how could it be possible to finalise a meger deal if 97% of hedge funds redeemed their investments prior to the merger! how did the spac sponsor paid the acquired company ?

[@shashank.c]

Brilliant as usual Patrick. Your videos are very useful making average people aware. However, for a bit dimwitted people like me who get lost in the fairly overwhelming concepts, could you do this again with some info graphics?

[@andrewc3850]

Brilliant explanation, i enjoy your content and always learn something great

[@qwaszxerdfcvtyghvb]

2:19 if the spac fails to complete a merger it sales off the bonds and return the money to shareholders with interest!! : to whom exactly the spac promoter can sell the bonds! isn't this a case of liquidation! and from where the spac promoter will bring money to pay interest?

[@gunshow2121]

Financial Tyson Fury is my favourite 🥊🥊

[@dabd8175]

🥳🥳🥳

[@evesbadtrade5298]

There is one company that I waited years to go public, and they chose SPAC. As I am an investor and not a trader, I buy the dips to create a position. And as ZZ Top said, "Every girl crazy 'bout a sharp dressed man."

[@dkvizion]

Thank you, for the insight.

[@RavenRaven-se6lr]

Thanks for the heads up Patrick . Could you do a review on CFDs as a financial Product?

[@coconutads]

This is why I love wallstreetbets. F the hedge funds.

[@maltem7973]

You clearly didnt watch the video untill the end and didnt get what point he made... the hedge funds havent done anything wrong, its the people providing them with these easy money deals that are purposefully harmful towards retail investors that should be loathed

[@pauls064]

The point just went straight over your head, lol...

[@Nukestarmaster]

I have no idea why so many people are so happy to buy a share of a company before they even know what that company is. It would probably be better to have a random number generator pick my next buy.

[@portmoneul]

Agent 47 warning people. I love it.

[@jamesbarnes8016]

Most subtle book placement on KZbin

[@na-cp9kp]

Always learning something new from you! Thank you as always! More power to ya!

[@stevej3483]

Patrick entertaining and educational as always.

[@cosmicmauve]

Stopped in for the accent, but really good content. Subscribed. (Nice suit!)

[@mariusweber4990]

Awesome video, really interesting subject.

[@ricardocavaleiro8822]

Why not just buy a new spac issue on the secondary market when it IPO's, hold the units, split them once possible, sell the commons and keep the warrants for upside optionality? And then rinse and repeat.

[@NathanielSkinnerMusic]

Yes yes, all fine and good... but how do I call that phone?

[@mwcinci]

Patrick I enjoy your videos. Also cciv got 5k from me. I held options when they made the official announcement and diluted the company value at the same time

[@OF-rl5lp]

I remember seeing the nikola deck in my email last year and thinking instant fraud, but still fwd’d to my PM because i knew that retail would give it legs. And now we’re here... twilight zone

[@MrDavidJMa]

An elaborate 'pump and dump' scheme!

[@qwaszxerdfcvtyghvb]

2:10 if a share holder redeem his shares he gets his money back plus some interest? if the deal is not yet settled where the Spac promoter will bring money to pay interest and based on what calculations the interest is calculated?

[@NotnaRed]

Thanks for telling me that I'm a sucker if I don't pull out of cciv before the merger

[@justgeneric2876]

Patrick, you might have already done a vid on this, but could you talk about reverse mergers again? I have seen a good number of them of late. Is it a better deal then buying in on IPOs?