There have been 35 activist short campaigns against SPACs that completed mergers since the beginning of 2020, according to new research from Insightia. 

The data highlights that shorts are the leading cause of grief for SPACs, a financial innovation that has taken off in the past two years.  

Eight activist short sellers have targeted more than one de-SPACed company, and at least one short seller has targeted a pre-merger SPAC, taking advantage of enthusiasm from retail investors sending the stock soaring. 

In contrast, no SPACs have been targeted by a long activist campaign. Experts cite market dynamics and takeover defences as the likely reason for this, while many activists have also launched their own SPACs. 

Activist Insight Monthly lists 18 SPACs recently launched by firms with a history of activism, a non-exhaustive list that highlights the popularity of the tactic. 

So far, SPACs have not suffered significant opposition to mergers, with an average of 97 per cent support for these resolutions recorded at shareholder meetings by Proxy Insight Online. Experts say that the structure of many SPACs incentivises votes for transactions, even if shareholders opt to redeem their shares for capital held by the vehicles.