(Bloomberg) -- Izzy Englander's Millennium Management is getting in on the SPAC frenzy by snapping up a 7.8% stake in RedBall Acquisition Corp., the blank-check company co-led by baseball executive Billy Beane.
The hedge fund, which runs more than $40 billion, revealed the holding in a 13G filing Wednesday. The New York-based firm declined to comment.
SPACs, or special purpose acquisition companies, are pools of cash raised from investors with the goal of acquiring a target they haven't yet identified. They have surged in popularity this year as investors view them as safe bets that could offer better returns that Treasuries. Merging with a SPAC has also become a popular way for companies to go public.
Read more: As SPACs Mania Builds, Wall Street Emerges as the Clear Winner
RedBall completed a $575 million initial public offering on Aug. 17 after it started trading on the New York Stock Exchange last week under the ticker RBAC/U. The company is co-led by Beane, who was featured in the 2003 book “Moneyball: The Art of Winning an Unfair Game” and is backed by private equity firm RedBird Capital Partners.
Read more: Blank-Check Firm Led by ‘Moneyball' Maestro Beane Files For IPO
RedBall intends to pursue an acquisition in the sports, media and analytics sectors, with a focus on professional sports franchises, Bloomberg previously reported.
Beane is also a consultant to the Dutch football club AZ Alkmaar and a minority owner of U.K.'s Barnsley Football Club. RedBall's team also includes Co-Chairman Gerald Cardinale, Chief Executive Officer Alec Scheiner and Executive Vice President Luke Bornn.
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