The IPOX® Week, October 12th, 2020

  • Most IPOX® Strategies soar to fresh all-time highs, strength extends across global regions.
  • IPOX 100 U.S.-linked ETF (ticker: FPX) price crosses $100 price mark, launched at $20 in 2006.
  • Asia-Pacific specialty exposure extends big run-up.
  • Poland’s ecommerce giant Allegro (ALE PW) lined up.

Most IPOX Strategies soar to fresh all-time highs, strength extends across global regions. Big momentum in exposure seemingly insulated from Covid-19 inflicted global economic vows and (perceived) corporate actions drove most IPOX Indexes to close the week at an all-time high. In the U.S., e.g., the FANG-free IPOX 100 U.S. (ETF: FPX) added +4.56% to +27.16% YTD, with fund value, starting at $20 in 2006, closing the week above the $100 mark for the first time (unadjusted for dividends). Amid (perceived) corporate actions, outsized returns were driven by a jump in biotech’s and technology-related firms including biotech MyoKardia (MYOK US: +58.47%) and semiconductor maker IPOX heavyweight IPO M&A Marvell Technologies (MRVL US: +12.55%). Big gains extended to markets abroad, including Europe and Asia-Pacific. Here, we note continued (hedge-fund) linked buying of stocks pooled in the IPOX International (ETF: FPXI) and IPOX 100 Europe (ETF: FPXE), such as biotech CRSPR (CRSP US: +23.33%), Tokyo-traded AI application software maker AI Inside (4488 JP: +17.78%), Australian Fintech Netwealth (NWL AU: +16.22%) or accounting software maker Freee (4478 JP: +5.03%). Notable decliner on the

week included biotech Swedish Orphan (SOBI SS: -11.22%).

IPOX® SPAC Index (SPAC) Update: The IPOX® SPAC Index declined -0.93% to +10.66% since its 07/30/20 launch, lagging the major U.S. benchmarks. News include 1) Healthcare cost management firm MultiPlan completed its merger with Churchill Capital III; 2) 3 SPACs announced targets including Stable Road with space infrastructure firm Momentus, Social Capital Hedosophia III with insurtech Clover Health, and Live Oak with bioplastics maker Danimer Scientific; 3) EV-start up Faraday Future is in talks to go public via a reverse merger; 4) 10 more SPACs IPO’d with Chamath Palihapitiya raising another $2.1B in total for three new Social Capital Hedosophia SPACs (IPOD/U, IPOE/U, IPOF/U); 5) At least 17 new SPAC filed to go public.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.16 27.93 45.91
IPOX® International (IPXI)* (USD) (ETF: FPXI) 4.56 31.37 47.79
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* (USD) 4.80 24.65 25.87
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 4.56 29.60 27.16
IPOX® ESG (IPXT) (USD) 4.76
IPOX® SPAC (SPAC) (USD) -0.93
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.90 34.55 25.44
IPOX® Nordic (IPND) 3.43 38.52 43.46
IPOX® 100 Europe (IPOE)* (USD) 3.18 30.97 19.59
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 6.98 4.41 40.35
IPOX® China (CNI) (USD) 5.32 26.31 54.39
IPOX® Japan (IPJP)** (JPY) 7.86 37.91 24.86

* 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 %):
MYOKARDIA 58.47 DRAFTKINGS -23.46
FASTLY 32.77 PALOMAR HOLDINGS -20.50
TURNING POINT 26.78 SWEDISH ORPHAN -11.12
CRISPR THERAPEUTICS 23.33 MERCELL HOLDING -10.42
SPROUT SOCIAL 23.10 AJ BELL -7.14
SOLAREDGE 21.37 SELECTQUOTE -6.57
SUN* 21.29 DUCK CREEK -6.11
BIONTECH 20.81 NEXI SPA -6.07
10X GENOMICS 20.58 HELLOFRESH SE -4.61
BIOHAVEN PHARMA 19.84 CARVANA CO -4.15

IPO Deal-flow Review and Outlook: At least 18 firms IPO’d across the accessible global regions last week, with the average (median) equally-weighted deal adding +9.95% (+12.22%) based on the difference between the final offering price and respective weekly close. Oncology biotech Kronos Bio (KRON US: +42.47%) and Chinese online children edutainment firm iHuman (IH US: +33.33%) both debuted strongly in the U.S. Abroad, state-owned maritime shipping company Sovcomflot (FLOT RM: -1.90%) slipped after pursuing the first Moscow IPO since 2017, while chess grandmaster Magnus Carlsen’s Play Magnus (PMGME NO: -14.29%) also fell. Global IPO activity is set to continue at a brisk pace with Poland’s e-commerce giant Allegro (ALE PW), K-pop boyband BTS’s agency Big Hit Entertainment (352820 KS), Goldman Sachs-backed Kazakh banking and fintech firm Kaspi (KSPI LN), and Saudi Arabian supermarket chain BinDawood (BINDAWOO AB) lined up for this week. Other IPO news include: 1) Chinese insurance giant Ping An Group’s fintech arm online wealth management and lending platform operator Lufax files for U.S. IPO at $40B valuation; 2) U.S.-traded video platform Bilibili proceeds with homecoming HK listing.

Track global deal flow live on: https://bit.ly/32zolmG

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

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