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]
|TURNING POINT||26.78||SWEDISH ORPHAN||-11.12|
|CRISPR THERAPEUTICS||23.33||MERCELL HOLDING||-10.42|
|SPROUT SOCIAL||23.10||AJ BELL||-7.14|
|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
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