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CrossingBridge Pre-Merger SPAC ETF

Summary prospectus:

Registration filing:

Portfolio Managers. David K. Sherman, President of the Adviser, is the Fund’s Lead Portfolio Manager and T. Kirk Whitney, CFA®, Assistant Portfolio Manager and Senior Analyst of the Adviser, is the Fund’s Assistant Portfolio Manager. Mr. Sherman and Mr. Whitney have been managing the Fund since its inception in 2021.


  • Interesting. I only say this because this is the second time in the last few days that a seemingly well regarded fund manager has appeared to be offering a new fund modeled in the Kathie Wood's mode who many on this discussion board feel is nuts. The other - Goldman Sachs who recently offered up a Future Tech Leaders Fund.
  • @TheShadow - I'm confused. Which SPAC is inactive?

    The way I read you initial post is that Mr. Sherman and Mr. Whitney would be managing an ETF comprised of SPAC's. At least that's what the SEC document says also.

    "Principal Investment Strategies

    The Fund is an actively managed exchange-traded fund (“ETF”) that under normal market conditions will invest at least 80% of its net assets, plus borrowings for investment purposes, in shares of common stock and units of Special Purpose Acquisitions Companies (“SPACs”) that have yet to consummate a shareholder-approved merger or business combination. The Fund seeks to invest in publicly-traded SPACs that at the time of purchase are trading at or below the SPAC’s pro rata trust account value.

    The Fund will invest in SPACs that have a minimum total market capitalization of $100 million at the time of purchase by the Fund. The Fund will invest primarily in U.S.-listed SPACs, and may also invest in SPACs that are domiciled or listed outside of the U.S., including SPACs listed in Canada, the Cayman Islands, Bermuda and the Virgin Islands."

    Or did you mean to say that the ETF is inactive?
  • I did that, as well as the ones you previously posted. Might the "inactive" status refer to the ETF having not been funded and put up on the exchange?

  • Isn't it a little late to be getting in on the SPAC action? That momentum seems to have fizzled significantly in recent months.
  • I think so but WTFDIK.
  • Probably off-topic but I initiated a small position in AIEQ . Will buy some AIIQ tomorrow.
  • The ETF launched on Tuesday under SOC.

    "SPC is a renter, not an owner," said CrossingBridge's Founder and Portfolio Manager, David Sherman. "In other words, we aim to capture the fixed income nature of pre-merger SPACs purchased at a discount-to-collateral value with a potential equity pop from shareholders reacting favorably to an announced deal. But we are not interested in being an equity investor post-business combination – that is a whole different ballgame."

    According to CrossingBridge, SPACs offer very similar characteristics to fixed income securities, which include:

    · SPACs have a liquidation date which is equivalent to a bond's maturity date.
    · SPAC common stock shareholders have a full-redemption right upon a business combination, similar to a change-of-control put provision found in corporate debt indentures.
    · SPACs are fully collateralized by U.S. government securities for the benefit of SPAC common stock shareholders to be released upon a redemption or liquidation. Hence, when an investor purchases SPAC common stock below its pro rata trust account value and holds the security to redemption or liquidation date, the investor will receive a positive yield, similar to a fixed income security's yield to maturity.
    · SPACs may have equity upside by participating in an attractive business combination. This upside is similar to a convertible bond with the added feature that SPAC investors may redeem their common shares for their collateral value rather than continue ownership post-transaction.
    SPACs are not a new asset class for Sherman; he made his first SPAC investment over 15 years ago. Given the increased popularity and capital flowing into SPACs, Sherman has significantly increased the firm's exposure to SPACs during the past few years. CrossingBridge believes the market is now large and liquid enough to effectively manage SPAC-dedicated strategies.

    "Our guiding principle has been, and will continue to be, that return of capital is more important than return on capital," emphasized Sherman
  • SPC is symbol. Typo.
  • For those MFO investors that wish to execute themselves the strategy SPC is employing, I recommend the website The website is in beta but users can sign-up to get the entire US listed SPAC database for free which will allow folks to pick the SPACs they wish to buy directly.
  • @davidsherman,

    Thank you clarifying the details of the SPAC.
  • @carew388: a member tipped me off to AIEQ the other day. It bears watching. An MFO search on the symbol reveals that @Ted, our late colleague, mentioned the fund when it came to market in 2018. Your comment wasn’t off-topic.
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