IPOX® Strategies consolidate: The IPOX® Strategies consolidated during U.S. options expiration week as the continued rise in U.S. yields amid declining COVID-19 anxiety weighed on sentiment for equities after generally solid earnings. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) declined -1.12% to +13.70% YTD, lagging the S&P 500 (SPX), while outperforming the Nasdaq 100
(NDX). Declines extended to the international level, with both the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE) consolidating after the big run up YTD. Amid earnings, the
distribution of returns amongst individual IPOX® Portfolio Holdings diverged sharply. Upside weekly outliers included Softbank-held Swedish cloud communication platform developer Sinch (SINCH SS: +21.66%), Malaysia’s home products store operator Mr. DIY Group (MRDIY MK: +12.10%), leading Chinese smart phone maker Xiaomi (1810 HK: +9.27%) and Country Garden Services (6098 HK: +6.21%), China’s leading residential services provider. Select Japan-domiciled high growth firms ranked towards the bottom, including AI-software provider AI Inside (4488 JP: -19.58%), medical data and life insurance statistics provider JMDC (4483 JP: -13.32%) and e-commerce marketplace operator Mercari (4385 JP: -10.23%). We also note the renewed weakness in U.S. infrastructure software provider Fastly (FSLY US: -20.95%).
|Select IPOX® Indexes Price Returns (%)||2020||Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-0.36||15.91|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||-0.83||12.12|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC) (USD)||40.77||-1.65||11.75|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-1.12||13.70|
|IPOX® ESG (IPXT) (USD)||42.29||-1.31||11.01|
|IPOX® SPAC (SPAC) (USD)**||48.52||5.61||24.47|
|IPOX® EV (IPEV) (USD)***||11.02||-4.58||13.54|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||-0.45||7.01|
|IPOX® Nordic Core (IPND) (EUR)||59.89||1.15||10.36|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-0.54||10.59|
|IPOX® China Core (CNI) (USD)||88.02||-0.16||26.36|
|IPOX® Japan (IPJP)(JPY)||25.75||-1.37||0.85|
* 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 +5.61% on the week, rising +88.48% since its 7/30/2020 launch with big gains in Churchill Capital (CCVI US: +32.42%), CarLotz (LOTZ US: +11.31%) and Juniper Industrial Holdings (JIH US: +7.74%) leading the way up. SPAC news include 1) 8 SPACs Announced Definitive Merger Agreement/LOI include (partially): a) Artius Acquisition with sustainable materials company Origin Materials; b) Peridot Acquisition with lithium-ion battery recycler Li-Cycle; and c) Osprey Technology Acquisition with satellite imagery and geospatial monitoring firm BlackSky. 2) 1 SPAC Completed Business Combination include: a) Longview Acquisition with ultrasound machine maker Butterfly Network (BFLY). 3) Deals reportedly in talk include Blackrock-backed British online car dealer Cazoo. 4) 16 new SPACs IPO’d on the week.
IPO Deal-flow Review and Outlook: Another 13 IPOs launched across the globe last week with companies continuing to trade at significant premia when compared to their final offer prices, respectively. While deal activity slowed from previous weeks due to the shortened U.S. trading week and Lunar New Year holiday, noteworthy debuts included China’s first and only molecular cancer screening tests provider, New Horizon Health (6606 HK: +206.08%) and Warsaw’s biggest mobile gaming IPO, free-to-play casino games developer HUUUGE (HUGE PW: -1.00%). IPO activity is set to slow towards month-end with British art and antiques auction platform Auction Technology Group (ATG LN) and Chinese CRO Joinn Laboratories (6127 HK) lined up. Other IPO news include: 1) sneaker-maker Allbirds, Swiss running shoes maker On, Vivendi unit Universal Music Group mull IPO. 2) ByteDance in preliminary talks to list its Chinese TikTok unit Douyin in U.S. 3) U.K. food delivery startup Deliveroo close to reveal IPO filings; 4) Talks on Volkswagen to spin off luxury car unit Porsche in IPO continue.
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