Chamath warns retail investors to avoid his new SPAC

Core Insights - A new SPAC named "American Exceptionalism" launched by Chamath Palihapitiya raised $345 million to acquire startups in energy, AI, crypto/DeFi, or defense sectors [1] - Palihapitiya advises retail investors against purchasing the stock, with only 1% allocated for public trading and 98.7% sold to large institutions [2][3] - The SPAC market has shown poor post-merger returns for investors, leading to skepticism about their viability, as highlighted by the Yale Journal on Regulation [4] Group 1 - The SPAC aims to convert acquired startups into publicly traded entities, focusing on high-growth sectors [1] - Palihapitiya's warning to retail investors emphasizes the volatility and risks associated with SPAC investments, suggesting they are better suited for institutional investors [2][3] - Historical performance of Palihapitiya's previous SPACs indicates significant losses, with many down over 90% from their launch date [4] Group 2 - Goldman Sachs previously banned itself from underwriting SPACs for three years but has resumed involvement, reflecting a shift in market sentiment [4] - A poll conducted by Palihapitiya revealed that 71% of respondents opposed the launch of new SPACs, indicating a lack of confidence in the SPAC model [4]