EverArc Holdings (LSE:EVRA, Financial) is a special purpose acquisition company (SPAC) that caught our attention given the involvement of Co-Chairman Nicholas Howley. These vehicles allow companies to raise money from investors before acquiring an actual operating business (the target may be private or public), generally within an agreed-upon period. Weitz (including this Fund) has had a long (and profitable) relationship with Mr. Howley and his aerospace company, TransDigm (TDG). Although SPACs are not our typical fare, our prior experience with Mr. Howley, due diligence with management and understanding of the types of businesses they find attractive, we concluded that EverArc had the raw materials to be an attractive (if idiosyncratic) investment to add to our portfolio.
From Wallace Weitz (Trades, Portfolio)'s Hickory Fund fourth-quarter 2019 commentary.
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