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 Cash, the hedge fund operate by financier and poker player David Einhorn, sold its stake in special purpose acquisition enterprise (SPAC) Sporting activities Leisure Acquisition Corp. (NYSE:SEAH) in the 2nd quarter.

Einhorn Betway
Greenlight Capital founder David Einhorn at the Earth Collection of Poker. His hedge fund sold shares in the SPAC bringing Tremendous Team public. (Graphic: Institutional Trader)

Athletics Amusement is serving as the vehicle via which Super Team, the parent firm of worldwide online athletics betting operator Betway, will go public. The parties declared 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-test business at some issue throughout the June quarter, but the filing does not specify when that sale transpired so it is 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 public.

Skilled traders, like hedge resources these types of as Greenlight, are necessary by regulation to disclose holdings in just 45 times of the end of the prior quarter.

Einhorn Could Have Modestly Cashed in on Sports activities Enjoyment

Even though the SPAC remains lively, like in the gaming marketplace, share price ranges cooled off significantly as current market members questioned the sweetheart character of these bargains for blank-check sponsors and the bitter performances of lots of de-SPACed firms.

In the scenario of Sports activities Enjoyment Acquisition, that bank-check out stock was investing around $9.80 when the Tremendous Team merger was announced. The inventory subsequently ran to its higher of $10.85 and slowly traded decreased from there, closing at $9.91 on Monday. Based on when Greenlight acquired the stock, it appears most likely the hedge fund created a modest profit on the trade.

At the time the deal was declared and with the aforementioned a pre-fairness valuation of $4.75 billion, Tremendous Group’s merger with Sports Enjoyment represents a single of the greatest combinations to date among a SPAC and a gaming business.

Betway has market access to 10 states, which includes powerhouse sports activities wagering marketplaces such as Colorado, Indiana, Iowa, New Jersey, and Pennsylvania.

Einhorn Maintains SPAC, Gaming Publicity

Whilst Sports activities Leisure Acquisition is no lengthier part of the Greenlight portfolio, Einhorn’s hedge fund still has publicity to gaming equities and businesses that arrived to sector by means of blank-verify transactions.

For case in point, one of the fund’s new positions is Playboy Team (NASDAQ:PLBY), which came general public again earlier this 12 months subsequent a merger with a SPAC. Playboy has some gaming exposure and is mentioned to be interested in extra promotions in the field.

Greenlight also owns stakes in sporting activities betting data provider Genius Sports (NYSE:GENI) — a further de-SPACed corporation — and streaming support company 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 even now nascent in-game betting market.

Greenlight also holds a position in social casino developer Playstudios (NASDAQ:MYPS), which went public in June adhering to a SPAC transaction.

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