What happened 

Shares of Social Capital Hedosophia Holdings Corp. III (NYSE:IPOC), which is now known as Clover Health and will trade under the ticker symbol "CLOV" for Class A shares, jumped 61.4% in December, according to data provided by S&P Global Market Intelligence, as investors anticipated the official business combination. 

So what 

There wasn't any significant news out from Clover Health during December, but the market rose sharply and growth stocks like this were a favorite of investors. 

Stethoscope on a blue background.

Image source: Getty Images.

President-Elect Biden's win should also be a tailwind with Democrats interested in expanding Medicaid and Medicare across the country. That could create opportunities for companies like Clover Health. 

The bigger news happened today as the business combination officially took effect and Clover Health shares traded on their own. In the next few months, we'll see complete financial results from the company; that's when investors can really make their judgements on the stock.

Now what 

The reality is that SPACs, or special purpose acquisition companies, have been hot on the market, partly because they give investors access to new, high-growth companies. This just happened to be one of the better-known companies to have its business combination with a SPAC, which gave investors a reason to buy shares. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.