The Fund will never be the Sponsor of a SPAC; it will be one among hundreds of other investors into the SPAC, along with investment banks, hedge and pension funds
Escrow accounts are opened in bulge bracket banks such as Citi, Credit Suisse, Morgan Stanley, JP Morgan, Deutsche Bank, Merrill Lynch
TRADING ON THE MARKET
In the event of material upsides before the BC, the Fund will sell its SPAC Shares on the market
In case the Fund has not sold SPAC Shares on the market, it will ALWAYS opt for capital redemption (capital + interests)
DECORRELATION AND LOW VOLATILIYT
Decorrelation and low volatility are a direct consequence of the very nature of a SPAC: until the BC it represents and investment into 90 days T-bills and any substantial downside deviation from its IPO price (redemption value) would represent an immediate and easy arbitrage opportunity. Here below an example of how SPACs have performed during early period of Covid-19.