The IPOX® Week, September 21th, 2020
September 21, 2020- Futures and Options expiration week delivers pain for most global equity investors, strong gains for investors in IPOX Strategies. IPOX SPAC Index (SPAC) extends big run-up.
- IPOX 100 U.S. (ETF: FPX) adds +1.73% to +15.32% YTD. IPOX International (ETF: FPXI) rises +1.98% to +43.52% YTD. IPOX Europe (ETF: FPXE) adds +2.00% to +16.07% YTD.
- More U.S. deals lined up as IPO window open in Europe
Track the performance of U.S. SPACs live with the IPOX® SPAC Index (BBG: SPAC, Reuters: .SPAC): The liquid IPOX SPAC (SPAC) added +3.81% last week, to +19.31% since its 07/30 live launch, outperforming the S&P 500 (SPX) and Russell 2000 (RTY) anew. SPAC news include: 1) fleet electrification solution provider XL Fleet to merge with Pivotal Investment Corp II; 2) 9 SPACs launched last week and at least 12 new SPACs filings include Apollo sponsored Apollo Strategic Growth Capital; 3) Playboy Enterprises explores “going public” via SPAC merger.
Expiration week delivers pain for most global equity investors, strong gains for investors in IPOX. U.S. Futures and Options expiration left investors in the IPOX Strategies (ETFs: FPX, FPXI, FPXE) towards
the top of the weekly performance rankings, as U.S. equity risk declined (VIX: -3.87%), rates steadied, and large-cap U.S. technology stocks drifted anew (NDX: -1.36%). In the U.S., e.g., the broad-based IPOX 100 U.S. (ETF: FPX), benchmark for U.S. IPO and Spin-off performance, added +1.73% to +15.32% YTD, extending the YTD/YY lead vs. the S&P 500 (SPX) to +1257 (857) bps. Strength extended to markets abroad, with the IPOX International (ETF: FPXI) and IPOX Europe (ETF: FPXE) all rising. Strength in IPOX-tracked specialty exposure often untracked in the conventional portfolios drove the good showing, including Michael Jordan-backed SPAC IPOX 100 U.S. member (ETF: FPX) online entertainment services provider DraftKings (DKNG US: +33.60%), online collaborations platform operator Zoom Video (ZM US: +14.55%), Dutch Payment processor Adyen (ADYEN NA: +10.76%) and key Saudi Arabia’s health care services provider Dr. Sulaiman Al-Habib (SULAIMAN AB: +6.86%). Corporate Actions and seasonality pressured select names including security services firm ADT (ADT US: -20.07%) and outdoor products/services providers vehicle maker Camping World (CWH US: -12.72%) and cooler maker Yeti (YETI US: -8.68%).
| Select IPOX® Indexes Price Returns (%) | Last Week | 2019 | 2020 YTD |
| IPOX® Indexes: Global/International | |||
| IPOX® Global (IPGL50) (USD) | 1.87 | 27.93 | 37.88 |
| IPOX® International (IPXI)* (USD) (ETF: FPXI) | 1.98 | 31.37 | 43.52 |
| IPOX® Indexes: United States | |||
| IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) | 1.73 | 29.60 | 15.32 |
| IPOX® ESG (IPXT) (USD) | 3.05 | – | – |
| IPOX® SPAC (SPAC) (USD) | 3.81 | – | – |
| IPOX® Indexes: Europe/Nordic | |||
| IPOX® 30 Europe (IXTE) (EUR) | 2.11 | 34.55 | 21.70 |
| IPOX® Nordic (IPND) | 2.54 | 38.52 | 36.02 |
| IPOX® 100 Europe (IPOE)* (USD) | 2.00 | 30.97 | 16.07 |
| IPOX® Indexes: Asia-Pacific/China | |||
| IPOX® Asia-Pacific (IPTA) (USD) | 3.34 | 4.41 | 32.49 |
| IPOX® China (CNI) (USD) | 2.25 | 26.31 | 51.61 |
| IPOX® Japan (IPJP)** (JPY) | 3.05 | 37.91 | 12.82 |
* 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]
| DRAFTKINGS | 33.60 | NETWORK INTERN’TL | -32.69 |
| STILLFRONT GROUP | 19.53 | GOOSEHEAD INSUR. | -20.50 |
| TESLA | 18.63 | ADT INC | -20.07 |
| MYOKARDIA | 18.23 | CAMPING WORLD | -12.72 |
| ADC THERAPEUTICS | 17.63 | INARI MEDICAL | -11.01 |
| ZEALAND PHARMA | 15.43 | YETI HOLDINGS | -8.68 |
| ADAPTIVE BIOTECH | 15.21 | SOFTWAREONE | -8.07 |
| SHOP APOTHEKE EUROPE | 15.05 | PINDUODUO | -5.82 |
| ZOOM VIDEO | 14.55 | FARFETCH | -5.75 |
| ARGENX SE | 13.89 | REYNOLDS CONSUMER | -5.47 |
IPO Deal-flow Review and Outlook: At least 26 firms IPO’d across the eligible global markets last week, with the average (median) equally-weighted deal adding +57.67% (+11.81%) based on the difference between the final offer price and respective Friday’s close. U.S. cloud data warehouse Snowflake (SNOW US: +100.00%), DevOps software developer JFrog (FROG US: +47.23%), game software company Unity (U US: +31.44%) and portable dialysis firm Outset Medical (OM: +122.26%) all surged on debut. Abroad, Canadian payment firm Nuvei (NVEI CN: +77.50%) and British e-commerce unicorn The Hut Group (THG LN: +18.40%) also recorded strong gains, while Kuwait stock exchange operator Boursa Kuwait (BOURSA KK: +939.00%) rose more than tenfold. While high-profile data analytics unicorn Palantir (PLTR US) pushed its Direct Listing to month-end, select key deals lined up include Silver Lake-backed telemedicine firm GoodRx (GDRX US), PE-backed motorhome maker Knaus Tabbert (KTA GR) and German defense supplier Hensoldt (5UH GR). Other IPO news include: 1) Macquarie prepares IPO for its data analytic company Nuix; 2) mortgage lender LoanDepot to revive IPO plan; 3) TikTok weighs U.S. IPO upon U.S. ban whereas its rival Kuaishou mulls $5B Hong Kong IPO; 4) more homecoming secondary offerings from U.S.-listed Chinese companies include Zai Lab, ZTO Express, Baozun, and Huazhu.
Track global deal flow live on: https://bit.ly/32zolmG
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