Investors in the SPAC that merged with Trump Media reportedly sold their stakes on the news.”For us, this was not a close call,” Boaz Weinstein, of Saba Capital Management, told Bloomberg .Shares of Digital World Acquisition Corp.climbed 357% on Thursday and 107% on Friday.
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“I knew that for Saba the right thing was to sell our entire stake of unrestricted shares, which we have now done,” Boaz Weinstein, founder of Saba Capital Management, told Reuters .
Shares of Digital World Acquisition Corp., a SPAC , or special acquisition company, soared last week as it merged with Trump’s new company.Saba sold in the market’s “first hours” on Thursday, netting a small profit, The New York Times reported.
Boaz Weinstein, founder and chief investment officer at Saba Capital Management.
Richard Brian/Reuters Digital World shares jumped on Thursday to $45.40 apiece , a one-day gain of 357%.On Friday, the stock continued its march upward, touching $175 per share, a 285% gain, in midday trading before slipping back down.The stock ended the day at $94.20 per share, a 107% gain.Reuters reported that Lighthouse Investment Partners also pulled its investment.In a statement sent to Reuters on Friday, the investment firm said: “Lighthouse was not aware of the pending merger and no longer holds unrestricted shares of the SPAC.”
Saba had a 9.3% stake in the SPAC, while Lighthouse had a 11.2% stake, CNBC reported, citing documents filed with the US Securities and Exchange Commission in September.
In a statement emailed to Bloomberg , Weinstein said, “Many investors are grappling with hard questions about how to incorporate their values into their work.For us, this was not a close call.”
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