The IPOX® Week, September 16, 2019

  • Market catches up to IPOX as Value trumps Growth on big reversal in rates & currencies ahead of FED & expiration.
  • IPO Deal-flow Review & Outlook: Mixed initial IPO sentiment as teledentistry startup SmileDirectClub (SDC US) declines sharply, others gain. More unicorns including Danaher’s dental business Envista (NVST US), SaaS developer Datadog (DDOG US) and identity management company Ping Identity (PING US) lined up.

Market catches up to IPOX as Value trumps Growth on big reversal in rates & currencies ahead of FED & expiration. Massive moves in global equity indexes spreads ahead of the Fed and expiration triggered by a big reversal in global rates & currencies and profit taking in momentum exposure underpinned by declining equity risk and smoother lip service over global trade left the IPOX Indexes towards the bottom of the global equity indexes rankings last week, reversing some of their YTD’s relative gains. Declines were broad-based  with  strategies  recording the best YTD returns (IPXI, IPXO

IPOX® 100 U.S. Investing with the “FPX” ETF since 2006:

and IPND) suffering the most. In the IPOX 100 U.S. (ETF: FPX), e.g., most downside amongst individual portfolio holdings was recorded by high growth/beta application software makers, including ZS Scaler (ZS US: -25.87%), Alteryx (AYX US: -21.05%), Okta (OKTA US: -15.80%) or Coupa Software (COUP US: -11.36%) with profit taking also extending to momentum exposure associated with recently strongly performing firms in the consumer staples, health care and REIT space, including chocolate maker IPO M&A Hershey (HSY US: -6.55%) VICI Properties (VICI US: -2.47%) or medical devices maker Stryker (SYK US: -1.45%). Abroad, we note another fresh post-IPO High in IPOX International (ETF: FPXI) portfolio holding aircraft leasing firm, Hong Kong-traded USD billion 6.8 BOC Aviation (2588 HK: +8.32%) on optimism about the industry.

IPOX-linked Funds Performance Updates: The IPOX 100 U.S. (IPXO)-linked, $1.3 billion First Trust U.S. Equity Opportunities ETF (FPX) finished last week at +25.35% YTD, while the IPOX International (IPXI)-linked First Trust International Equity Opportunities ETF (FPXI) and the IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) closed at +23.85% and +22.01% YTD, respectively. Amongst actively managed IPOX funds, the Catalyst IPOX® Allocation Fund (OIPAX US) finished the week at +22.20% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -2.06 -11.37 21.82
IPOX® International (IPXI)* (USD) -2.81 -13.47 21.80
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -0.44 -7.59 18.18
IPOX® 100 U.S. (IPXO)* -2.22 -8.80 24.79
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -1.88 -13.46 22.34
IPOX® Nordic (IPND) -2.50 -15.45 22.91
IPOX® 100 Europe (IPOE)* (USD) -1.54 -16.60 19.47
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -1.35 -3.21 2.09
IPOX® China (CNI) (USD) -0.21 -22.83 17.22
IPOX® Japan (IPJP)** (JPY) -0.08 -13.70 -2.18

* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: Mixed initial IPO sentiment as teledentistry startup SmileDirectClub (SDC US) declines sharply, others gain. More unicorns including Danaher’s dental business Envista (NVST US), SaaS developer Datadog (DDOG US) and identity management company Ping Identity (PING US) lined up. Six firms debuted in markets open to global investors last week, with the average (median) equally weight stock adding +16.48% (+22.53%). Gene sequencing startup 10x Genomics (TXG US: +34.03%) and cybersecurity company Cloudflare (NET US: +19.33%) were both off to a strong start on above elevated range offers, while dental unicorn SmileDirectClub (SDC US: -18.78%) left initial IPO investors with losses, recording the worst first day performance amongst the billion-offer league. Abroad, we note a successful first week of trading for Naspers spin-off, discounted internet group Prosus (PRX NA: +25.89%). Another three unicorns are set to launch this week including conglomerate Danaher’s $3 billion dental business Envista (NVST US), $6 billion VC-backed New York-based software developer Datadog (DDOG US), and another billion-dollar unicorn, PE-backed identity management firm Ping Identity (PING US). Other IPO news include a) another round of valuation cut of WeWork (WE US) before its IPO, b) Warburg Pincus-backed logistic real estate firm ESR Cayman to relaunch Hong Kong IPO, c) AB InBev to revive its Budweiser Asia unit IPO.

Track Priced & Upcoming IPOs on https://ipox.com


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