The IPOX 100 U.S. (ETF: FPX) continued the strong recovery from its March weakness ahead of U.S. Options expiration week, as big gains amongst specialty exposure ahead of key earnings propelled the diversified portfolio towards the top of the weekly U.S. Indexes performance rankings. Specifically, the underlying for the $2.1B “FPX” ETF added +3.32% to +6.00% YTD last week, +61 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Big gains in Spin-off apparel products maker Kontoor Brands (KTB US: +16.84%), payment processing solutions provider Shift4 Payments (FOUR US: +16.46%), heavyweight U.S. social networker Snap (SNAP US: +16.11%) and iconic fashion label Levi Strauss (LEVI US: +8.36%) contributed to the strong showing. In the cross-section, 72/100 portfolio holdings gained last week, with the average (median) stock adding just +1.98% (+1.74%), significantly less when compared to the market-cap weighted IPOX® 100 U.S. (ETF: FPX) and indicative of the relative weakness in the Russell 2000 (RTY) last week, which declined by -0.51%.
Weakness amongst China-linked exposure last week weighted on the performance of the IPOX® International (ETF: FPXI), which tracks non-U.S. domiciled exposure IPOX®-Style. Here, the underlying for the $1.2B “FPXI” ETF added +0.80% to -2.15% YTD, in line with the benchmarks. Amid what appears repatriation selling driven by de-risking focused foreign investors, China-linked exposure recording big weakness included restaurant operator Haidilao International (6862 HK: -9.62%), real estate services provider Country Garden Services (6098 HK: -6.20%), online entertainment company Bilibili (BILI US: -5.52%) and e-commerce marketplace operator Pinduoduo (PDD US: -4.38%). Non-China linked portfolio holdings including Canadian infrastructure software maker Lightspeed POS (LSPD CT: +12.01%), IPO M&A Michael Kors owner Capri Holdings (CPRI US: +8.40%) and German COVID-vaccine producer BioNTech (BNTX US: +7.26%) rose sharply. Amid much U.S. media focus on Middle Eastern IPOs, IPOX® notes the fresh all-time high in long-time portfolio stock Saudi Arabian hospital operator Dr. Sulaiman Al Habib (SULAIMAN AB: +6.24%).
Gains in the IPOX Nordic (IPND: +4.34% and all-time high) contributed to a strong week for the IPOX® Europe (ETF: FPXE), which added +2.72% to +0.91% YTD, slightly outpacing the regional benchmarks. Sweden-domiciled exposure led the way including biotech Cellink (CLNKB SS: +22.10%), Softbank-backed communications platform developer Sinch (SINCH SS: +12.58%), construction services provider Instalco (INSTAL SS: +8.46%) and health care and diagnostics services provider Medicover (MCOVB SS: +6.84%). While China-linked declines pressured investment firm Prosus (PRX NA: -5.36%), the fall-out over positions at U.S. hedge fund Archegos continued to affect luxury shopping site operator Farfetch (FTCH US: -3.27%).
|Select IPOX® Indexes Price Returns (%)||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||1.19||2.20|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||0.80||-2.15|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||3.32||6.00|
|IPOX® ESG (IPXT) (USD)||42.29||1.75||4.09|
|IPOX® SPAC (SPAC) (USD)**||48.52||1.04||1.24|
|IPOX® EV (IPEV) (USD)||11.02||-1.56||0.75|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||36.95||1.40||4.41|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||2.72||0.91|
|IPOX® Nordic Core (IPND) (EUR)||59.89||4.34||12.73|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||1.95||2.04|
|IPOX® China Core (CNI) (USD)||88.02||-2.86||-5.41|
|IPOX® Japan (IPJP)(JPY)||25.75||1.68||3.15|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).
IPOX® SPAC Index (SPAC): The Index added +1.04% on the week to +1.24% YTD and +50.38% since its 7/30/2020 launch. SPAC news include: 1) 6 SPACs Announced Merger Agreement/LOI include (partially): a) CA Healthcare Acquisition with COVID-19 test maker LumiraDx; b) TWC Tech II with Israeli phone-hacking company Cellebrite; and c) Mudrick Capital II with baseball card maker Topps. 2) 2 SPACs Completed Business Combination and Began Trading include: a) New Providence Acquisition with satellite cellular broadband company AST SpaceMobile (ASTS) and b) Replay Acquisition with Finance of America (FOA). 3) Deals reportedly in talks include a) Yucaipa Acquisition with German online retailer Signa Sports and b) Soaring Eagle Acquisition with biotech Ginkgo Bioworks. 4) 8 new SPACs launched last week.
IPO Deal-flow Review and Outlook: 10 IPOs launched across the global regions last week with the average (median) equally weighted deal adding +22.31% (+10.90%) based on the final offer price and respective Friday’s close. While the only sizeable IPO of the week, Tencent-backed fintech Linklogic (9959 HK: +9.90%), was well received in Hong Kong, Brazilian pharma Blau postponed. U.S. deal are set to take center stage with crypto exchange Coinbase (COIN US, ca. $68B), KKR-backed app monetization platform AppLovin (APP US, ca $30B), CD&R-backed healthcare platform Agilon Health (AGL US, ca $9B) and autonomous truck startup TuSimple (TSP US, $8B) lined up. Other IPO news include: 1) Abu Dhabi’s SWF Mubadala mulls U.S. IPO for its chipmaker GlobalFoundries ($20B). 2) Brazilian card association Elo in talks to go public at $7B valuation. 3) ThaiBev closer to spin off its brewery unit BeerCo in Singapore’s largest IPO in a decade. 4) European’s largest lab service provider Synlab plans Frankfurt IPO. 5) ADNOC considers IPO for its drilling unit. 6) China’s ride hailing giant Didi Chuxing and London-based private club Soho House reportedly file for U.S. IPO confidentially.
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