Summary: Positive Momentum in the broad-based U.S. and European benchmarks decelerated significantly last week with weekly losses in U.S. equities accelerating after Friday mornings quarterly Futures expiration. Amid a spike in equity risk (VIX: +32.27%) and a surge In the U.S. dollar after the FED-meeting, drivers were both fundamental and technical with muted earnings forecast by Citibank (C US: -11.60%) and JP Morgan (JPM US: -7.75%) triggering big asset allocation shifts away from Value at the benefit of Growth. Most IPOX® Indexes were less impacted from this sea change: In the U.S., e.g., the diversified, FANG-free, and broad-based IPOX® 100 Index (ETF: FPX) fell -0.53% to +4.43% YTD, outpacing the S&P 500 (SPX) by +137 bps last week. Relative strength extended to select markets and sectors, including the IPOX® International (ETF: FPXI) and IPOX® ESG (IPXT), e.g.,
IPOX® 100 U.S. (ETF: FPX) since live launch
IPOX® HOLDINGS: Amid the big resurgence in Growth vs. Value, most upside focus was on specialty growth stocks expected to be insulated from macroeconomic overhang. Included In the list are online social media management tool maker 12/2019 IPO Sprout Social (SPT US: +14.17%), financial automation software firm 12/2019 IPO Bill.com (BILL US: +13.45%,), electronic signature solutions provider 04/2018 IPO DocuSign (DOCU US: +8.47%) or chip maker IPO M&A IPOX heavyweight Marvell Technologies (MRVL US: +4.17%). In non-U.S. domiciled IPOX® exposure, we note another big week for Canadian cloud-based point of sale (POS) systems provider 08/2019 IPO Lightspeed POS (LSPD US: +13.44%), while perceived corporate action activity propelled Australian fintech online wealth management platform operator 11/2017 IPO Netwealth (NWL AU: +9.23%) to a multi-month high. The best percentage gain amongst IPOX® Holdings belonged to Japan-traded medical services provider 10/2019 IPO CellSource (4880 JP: +27.22%) which surged after reporting its quarterly report. Adverse company news, including slower-than-expected user growth and disappointing trial results pushed CA-based kids entertainment products maker 03/2021 Direct Listing Roblox (RBLX US: -12.58%) and German biotech 03/2021 IPO CureVac (CVEC US: -36.68%) towards the bottom of the weekly IPOX® individual portfolio holdings performance rankings.
|Select IPOX® Indexes Price Returns||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-0.52||0.65|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||-1.47||-2.83|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-0.53||4.43|
|IPOX® ESG (IPXT) (USD)||42.29||0.07||6.52|
|IPOX® SPAC (SPAC) (USD)||48.52||-1.89||-2.80|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) (USD) (ETF: FPXE)||35.14||-3.36||1.43|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-3.95||11.10|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||0.33||0.29|
|IPOX® China Core (CNI) (USD)||88.02||-0.86||-8.26|
|IPOX® Japan (IPJP) (JPY)||25.75||-0.31||3.14|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1).
IPOX® SPAC INDEX (SPAC): The Index fell -1.89% to -2.80% YTD and +44.38 since Its 7/30/2020 launch. SPAC news (select): 1) 5 SPACs Announced Merger Agreements include (partial): a) Decarbonization Plus Acquisition III with Ford and BMW-backed solid batter maker Solid Power; b) Seven Oaks Acquisition with wholesale retailer Boxed; and c) GS Acquisition II with radiation detection company Mirion Technologies. 2) 4 SPACs Approved Business Combination (partial): a) Acies Acquisition with casual Casino games developer PLAYSTUDIOS (MYPS: TBD); b) Hudson Executive Investment with online therapy provider Talkspace (TALK: 6/23) and c) Fortress Value Acquisition II with rehabilitation services provider ATI Physical Therapy (ATIP: 6/17). 3) SPACs reportedly in talks include Kernel Group with vertical farming startup InFarm. 4) 6 new SPACs launched last week In the U.S.
IPO Deal-flow Review and Outlook: At least 32 IPOs launched across the accessible global markets last week with the average (median) equally-weighted deal adding +10.17% (0.00%) based on the difference between the final offering price and Friday’s close. The top 3 largest IPOs traded mixed with German fashion retailer About You (YOU GR: +10.48%) and Swedish animal health company Vimian Group (VIMIAN SS: +6.45%) debuting strongly, while Chinese dairy farms operator Youran Dairy (9858 HK: -11.89%) slumped. Chinese clear aligners manufacturer Angelalign Technology (6699 HK: +122.31%) surged to be the best-performing IPO of last week. More than two dozen of new IPOs are set to launch this week Including SoftBank and Tencent-backed Chinese “Uber-for-Trucks” Full Truck Alliance (YMM US), Insurtech Bright Health (BHG US), physician social networker Doximity (DOCS US) and German online bike retailer Bike24 (BIKE GR). Other IPO news include a) Insurer giant FWD files confidentiality for U.S. IPO; b) BASF postpones crude oil and natural producer Wintershall Dea IPO; and c) fintech Wise (TransferWise) plans London Direct Listing.
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