The IPOX® Week, October 29, 2018

  • IPOX 100 U.S Index (IPXO) declines with Markets on spike in risk, continued sell-off in Markets abroad.
  • IPOX introduces IPOX® Market Neutral.
  • IPO Deal-flow Review & Outlook: Bearish market sentiment weighs on IPO market. Biotech companies lined up for November. Hong Kong readies largest biopharma IPO YTD.

IPOX 100 U.S Index (IPXO) declines with Markets on spike in risk, continued sell-off in Markets abroad. Weak market sentiment amid mixed U.S. earnings, stable U.S. rates and more jitters in virtually all equity markets abroad pressed the IPOX Indexes last week, with the IPOX 100 U.S. (IPXO) – benchmark for the performing of New Listings in the U.S. – declining by -4.23%, -29 bps. more than when compared to the S&P 500 (SPX), benchmark for U.S. stocks. Declines were broad-based and extended across size and sectors with just 15/100 stocks ending the week in positive territory, with the average (median) recording a loss of -4.66% (-4.27%), lagging the applied market cap-weighted index. Notable downside was recorded by select regional banks (NTB US, GWB US), as well as fast growing consumer/technology firms (GRUB US, W US), while social networker Twitter (TWTR US: +12.24%) and specialty apparel store operator Burlington Stores (BURL US: +9.92%) rose against the trend. The IPOX® Long-only Indexes focusing on exposure abroad continued to suffer significant losses, generally in line with the performance of the market benchmarks.

IPOX 100® U.S. Investing with the ‘FPXETF since 2006:

IPOX introduces IPOX® Market Neutral: IPOX is pleased to note the introduction of IPOX® Market Neutral, scalable and globally focused all weather portfolio strategies focusing on the relationship between companies trading in the IPOX Holding period window. Portfolios are derived from IPOX’s proprietary IPOX®lab AI platform and aimed to deliver positive absolute returns with low correlation and low beta vs. global equities. Please contact [email protected] to receive further details.

Select IPOX-linked Investment Products Performance Update: The USD billion 1.1 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) declined to -2.65% YTD last week, while its international counterpart (FPXI) fell to -13.95% YTD. Amongst other IPOX-linked long-only products, the Catalyst IPOX® Allocation Fund (OIPAX) fell to +1.16% YTD.

Select IPOX® Indexes Returns (%) Last Week 2017 2018 YTD
IPOX® Long-Only: Global/International
IPOX® Global (IPGL50) (USD) -4.14 28.59 -7.92
IPOX® International (IPXI)* (USD) -3.72 37.80 -13.92
IPOX® Long-Only: United States
IPOX® 100 U.S. (IPXO)* (USD) -4.23 26.04 -2.53
IPOX® Long-Only: Europe/Nordic
IPOX® Europe 30 (IXTE) (EUR) -3.68 19.27 -9.51
IPOX® Nordic (IPND) (EUR) -6.75 17.91 -12.32
IPOX® 100 Europe (IPOE)* (USD) -4.42 41.77 -12.96
IPOX® Long-Only: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -5.29 23.30 -7.53
IPOX® China (CNI) (USD) -2.91 37.67 -21.27
IPOX® Japan (IPJP) (JPY) -7.11 N/A N/A
IPOX® Market Neutral
IPOX® Market Neutral Asia-Pacific** -1.76% N/A 9.12
IPOX® Market Neutral Europe** -4.86% N/A 15.17
IPOX® Market Neutral U.S.** 1.13% N/A 8.07
IPOX® Market Neutral Global** -0.34% N/A 9.36

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Index Futures [Symbol: IPOZ8]. ** live since 03/18.

IPO Deal-flow Review & Outlook: Bearish market sentiment weighs on IPO market. Biotech companies lined up for November. 8 firms debuted last week across accessible global regions, with the average (median) equally-weighted firm adding just +3.63% (+1.42%) based on the difference between the final offering price and Friday’s close. Bearish market sentiment weighed on the IPO market: While Buffett’s Berkshire Hathaway and Alibaba’s Ant Financial-backed Brazilian payment processor StoneCo (STNE US: +29.54%) soared on the upsized, above range IPO, another highly expected launch – premium outdoor gear maker YETI (YETI US: -8.61%) – tumbled on its downsized, below-range offering. IPOs outside the U.S. were also affected with the first Chinese D-share household appliance manufacturer Frankfurt-listed Qingdao Haier (690D GR: -0.95%) and the largest metallurgical coal producer Coronado Global Resources (CRN AU: -16.25%) declining based on final offer. Amid the generally slowing global IPO pipeline, the healthcare sector is dominating the pipeline into the start of the month: Notable IPOs to watch this week include London-based commercial-stage gene therapy company Orchard Therapeutics (ORTX US), San Francisco startup silicon-based synthetic DNA developer Twist Bioscience (TWST US), and the largest biotech IPO in Hong Kong YTD – Chinese antibody drug biopharmaceutical company Innovent Biologics (1801 HK).

Select IPOs traded (week: 10/22/2018) Domicile
Coronado Global Resources Australia
Qingdao Haier China
StoneCo Ltd Brazil
YETI Holdings United States
Select IPOs expected (week: 10/29/2018) Domicile
Axonics Modulation Technologies Inc United States
Innovent Biologics Inc China
Orchard Therapeutics Britain
Twist Bioscience Co United States

Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lime Brokerage LLC does not endorse, offer or recommend any of the services provided by any of the above service providers and any service used to execute any trading strategies are solely based on the independent analysis of the user.

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