IPOX® Strategies extend YTD run-up. The IPOX® Strategies continued their massive run-up across the board as 10-year U.S. rates surged beyond pre-pandemic levels on economic optimism and U.S. equity risk fell (VIX: -4.31%) amid a generally solid earnings season across core and satellite positions. In the U.S., e.g., the IPOX® 100 U.S. ETF (FPX) added +2.81% to +14.99% YTD, extending the YTD lead vs. the S&P 500 (SPX) and Nasdaq 100 (NDX) to 1020 bps. and +786 bps., respectively. Big strength abroad
supported, including the outperforming IPOX® 100 Europe (ETF: FPXE). Amid the shortened trading week abroad, growth focused specialty holdings led the list of best performing IPOX® Holdings, including U.S. real estate website operator Zillow (Z US: +26.18%), Japan’s innovative technology firms Freee (4478 JP: +25.42%) and Mercari (4385 JP: +23.94) and Hong Kong-traded Razer (1337 HK: +22.09%), the maker of innovative computer hardware for gamers.
We also note a good week for IPOX®’s core IPO M&A position, including chip maker Marvell (MRVL US: +7.53%), life science equipment producer Exact (EXAS US: +7.21%) and engineering services provider Jacobs (J US: +6.93%). Declines in software firms SVMK (SVMK US: -13.89%) and Blackline (BL US: -10.13%), as well as Japan’s small-cap AI Inside (4488 JP: -13.49%) after earnings did little to derail the positive overall sentiment in IPOX®.
|Select IPOX® Indexes Price Returns (%)||2020||Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||3.96||16.33|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||4.70||13.07|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC) (USD)||40.77||2.96||13.63|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||2.81||14.99|
|IPOX® ESG (IPXT) (USD)||42.29||3.04||12.48|
|IPOX® SPAC (SPAC) (USD)**||48.52||1.36||17.87|
|IPOX® EV (IPEV) (USD)***||11.02||3.21||19.00|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||3.42||7.51|
|IPOX® Nordic Core (IPND) (EUR)||59.89||3.75||9.08|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||4.56||11.23|
|IPOX® China Core (CNI) (USD)||88.02||5.35||26.56|
|IPOX® Japan (IPJP)(JPY)||25.75||3.39||2.25|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOH1). Source: Bloomberg. Prices exclude dividends. **since July 30, 2020, ***since Nov. 17, 2020.
IPOX® SPAC (SPAC). The index added +1.36% on the week, rising +75.07% since its 7/30/2020 launch. SPAC news include 1) 12 SPACs Announced Definitive Merger Agreement/LOI include (partially): a) Atlas Crest Investment with electric aircraft startup Archer; b) Gores VI spatial data company Matterport; and c) Tortoise II with EV charging station Volta Industries. 2) 5 SPACs Completed Business Combination include (partially): a) Longview Acquisition with ultrasound machine maker Butterfly Network (BFLY); b) Mountain Crest with iconic men’s magazine Playboy (PLBY); and c) Insu II with digital insurance platform Metromile (MILE). 3) Deals reportedly in talk include securities clearing house Apex Clearing with Northern Star II. 4) Another 26 new SPACs IPO’d on the week.
IPO Deal-flow Review and Outlook: At least 27 firms went public across the accessible global markets last week, with the average (median) equally weighted deal adding +41.40% (+41.80%) based on the difference between the final offering price and respective close. High-profile dating app unicorn Bumble (BMBL US: +75.49%), residential mortgage platform LoanDepot (LDI US: +124.86%) and advertising software developer Viant (DSP US: +161.96%) all skyrocketed upon debut. Abroad, Thai state-owned oil giant PTT’s retail unit spin-off PTT Oil & Retail Business (OR TB: +62.50%) also jumped on frenzied retail demand for the firms shares. The global IPO market will take a breather this week as major Asian markets are closed for Lunar New Year and U.S.’s Presidents’ Day shortened trading week. Poland’s mobile casino games developer Huuuge (HUGE PW) became focal point as Poland’s second largest gaming studio IPO on record. Other IPO news include: 1) SoftBank-backed Korean e-commerce company CouPang plans U.S. IPO at $50+ billion valuation. 2) Amazon-backed EV maker Rivian eyes IPO.
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