Why Hedge Funds Love Blank-Check Companies — Especially in This Sector

Deerfield prices its blank-check company’s IPO, while RA Capital’s special-purpose acquisition company makes history.

(Cyril Marcilhacy/Bloomberg)

(Cyril Marcilhacy/Bloomberg)

The only thing hedge funds seem to love more than blank-check companies? Blank-check health care companies.

This week Deerfield Capital has become the latest hedge fund to launch a special-purpose acquisition company (SPAC). It is also at least the fourth hedge fund to launch a healthcare-focused SPAC this year alone, in what has become a very popular sector in the overall red-hot market for these blank-check companies.

The

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