Tracking SPACs: The Morgan Joseph Acquisition Company Index (MJACI) Chart Goes Up and Up

Wow, we sure love charts that go up: Morgan Joseph has a Bloomberg-quoted SPAC Index called the MJACI worthy of checking out for those of you who are looking for a holistic view of aggregated, indexed SPAC performance right up until the point that a SPAC buys a business. Morgan Joseph describes their index as follows:

"MJACI is a market capitalization weighted (excluding promote shares and over allotments) index. MJACI adds newly formed public acquisition companies at their initial offer price and removes an existing acquisition company upon consummation of a business combination. In either event, index weightings are linearly rebalanced. The index is set equal to a base of 100 as of January 1, 2005."

Of course, the index fails to take into account plummeting equity values exhibited by most SPACs following the acquisition, but most of you are probably playing arb strategies and getting out prior to the combination anyways on these things, so what do you care?

Find out more here.