The IPOX® Week, August 10th, 2020

  • IPOX Indexes fall towards week-end, many still set weekly all-time Highs. Track SPACs with the IPOX® SPAC (SPAC).
  • IPOX 100 U.S. (ETF: FPX) adds +0.80% to +12.64% YTD. IPOX International (ETF: FPXI) rises +2.31% to +40.58% YTD. IPOX 100 Europe (ETF: FPXE) gains +0.80% to +17.14% YTD.
  • Issuer Flexibility matters: Rackspace (RXT) tanks while Rocket (RKT) rocks. More deals lined up.

Now track SPACs live with the IPOX® SPAC (Ticker: SPAC). IPOX is pleased to note the launch of the IPOX® SPAC, a benchmark portfolio focusing on Special Purpose Acquisition Vehicles.

IPOX Indexes fall towards week-end, many still set weekly all-time Highs. The IPOX Indexes rose last week to close at or near weekly-all-time highs. Trading Sentiment deteriorated towards the weekend on increased China-U.S. tensions with encouraging U.S. and European economic data driving some asset allocation away from the hugely outperforming growth-focused portfolios to conventional benchmark exposure and U.S. small-caps (RTY: +6.00%). In the U.S., e.g., the IPOX 100 U.S., underlying for the $1.5 billion “FPX” ETF, rose +0.80% to +12.64% YTD, lagging the S&P 500 (SPX) by -165 bps. on the week. Amid earnings and renewed corporate actions activity, weekly returns of portfolio holdings diverged sharply: While medical devices maker Irhytm Technologies (IRTC US: +62.33%) and security services provider ADT (ADT US: +41.70%) soared on strong earnings and an investment from Google, respectively, profit taking after earnings pressured infrastructure software makers Datadog (DDOG US: -19.80%) and Fastly (FSLY US: -17.70%). Abroad, we note a fresh weekly all-time

High recorded by number of IPOX Portfolios. The IPOX International, e.g., basis for the $220 million “FPXI” ETF, rose +2.31% to +40.58% YTD, extending the YTD lead vs. its benchmark to +4932 YTD. Here, big gains in Japan-traded exposure including leading courier services provider SG Holdings (9143 JP: +24.55%) and e-commerce firm Mercari (4385 JP: +16.97%) after blow-out earnings more than offset declines in some of the European-domiciled portfolio holdings including Swiss pharma products retailer Galenica (GALE SW: -6.99%) and German medical devices maker DAX-30 candidate Spin-off Siemens Healthineers (SHL GY: -6.07%) which fell after announcing the buy-out of U.S. medical equipment maker Varian (VAR US: +21.69%) last week-end.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 1.63 27.93 32.47
IPOX® International (IPXI)* (USD) (ETF: FPXI) 2.31 31.37 40.58
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 0.80 29.60 12.64
IPOX® ESG (IPXT) (USD) 1.66
IPOX® SPAC (SPAC) (USD) 0.93
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.98 34.55 24.77
IPOX® Nordic (IPND) 3.70 38.52 37.05
IPOX® 100 Europe (IPOE)* (USD) 0.80 30.97 17.14
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 4.12 4.41 23.31
IPOX® China (CNI) (USD) 3.44 26.31 44.31
IPOX® Japan (IPJP)** (JPY) 5.63 37.91 6.06

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
IRHYTHM TECHNOLOGIES 62.33 DATADOG INC -19.80
ADT INC 41.70 FASTLY INC – CLASS A -17.70
SG HOLDINGS CO LTD 24.55 EVERGY INC -14.92
CARVANA CO 23.91 ASSETMARK FINANCIAL -13.03
SOLAREDGE 20.77 CAMPING WORLD -11.61
MERCARI INC 16.97 CORTEVA INC -11.34
SOLARWINDS CORP 16.88 BLACKLINE INC -10.85
INARI MEDICAL INC 16.10 TWILIO INC -10.24
VARTA AG 15.91 CROWDSTRIKE HOLDINGS -10.11
MEITUAN DIANPING 15.89 CERIDIAN HCM HOLDING -10.07
ASTON MARTIN LAGONDA 15.46 DYNATRACE INC -9.54

Issuer Flexibility matters: Rackspace (RXT US) tanks while Rocket (RKT US) rocks. More deals lined up. At least 11 companies went public across the global regions last week, with the average (median) equally weighted deal adding +40.37% (+13.30%) based on the difference between the final offering price and respective Friday’s close. Reception to last week’s deals was mixed: While Apollo-backed cloud company Rackspace (RXT US: -26.67%) fell, Detroit mortgage giant Rocket Companies (RKT US: +38.33%) climbed strongly after its 1/3 scaled-back, below-range offer. Shopify (SHOP US: +2.92%) competitor BigCommerce (BIGC US: +229.17%) tripled. China’s largest CRO Tigermed (3347 HK: +13.30%) also debuted strongly in HK, marking the largest healthcare-related IPO in Asia YTD. Insurtech unicorn Duck Creek (DCT US), Tencent & SoftBank-backed Chinese real estate broker KE Holdings (BEKE US), PE-backed Brazilian home furnishing retailer Lojas Quero-Quero (LJQQ3 BZ) and Philippine’s first REIT IPO AyalaLand REIT (AREIT PM) are lined up to list this week. Other IPO news Include: 1) Chinese EV-maker XPeng to add on recent EV-maker IPO fest, 2) Lufthansa’s Technik maintenance unit spin-off IPO still on the table, and 3) KKR reported to revive IPO of defense supplier Hensoldt in Germany.

Track global deal flow live on: https://bit.ly/2WMvnT9

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