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U.S./Europe recovered as a positive FED and U.S earnings outweighed weakness in Asia/Emerging Markets. With the IPOX Strategies mixed and IPOX U.S. celebrating its 6th anniversary with top returns, a large number of IPOs went public. More IPOs of U.S. private equity firms in the pipeline.


· IPOX Strategies mixed, ex-Asia rises:Contrary to last week, relative weakness amongst China-linked (IPXUCHCP) and developed Asia-Pacific (IPTA) exposure was mitigated by strength in IPOX U.S. and IPOX Europe. On the global level, the IPOX Global 50 (IPGL50) rose +0.20% to +18.25% YTD, underperforming benchmark MSCI World (MXWD) by 93 bps., remaining +831 bps. ahead YTD.

The regional IPOX Strategies diverged sharply: After celebrating the ETFs 6th anniversary, the IPOX-linked U.S. IPO and spin-off ETF (NYSEARCA:FPX) gained +1.85% to +19.77% YTD. The ETF has a five star Morningstar rating, and ranks within the top 10% of best performing ETFs YTD and on a 1,3 and 5-year basis according to Bloomberg.

New all-time highs in the hedge-fund heavy members including Philip Morris International (NYSE:PM), Rackspace (NYSE:RAX) and Visa International (NYSE:V) contributed to the good showing. Recent non-IPOX stocks in "hot" sectors suffered, including U.S. social gamer Zynga (NASDAQ:ZNGA) after earnings. The IPOX Europe Universe bounced against weak European benchmarks with the IPOX Europe 30 (IXTE) gaining +2.27% with Spain's Amadeus IT Holdings (AMS SM) reaching an all-time high. The IPOX Strategies focusing on Developed Asia-Pacific (IPTA) fell by -1.20% to +21.59% YTD. Weakness in 2010 IPO Japanese Financial Dai-Ichi Life (8750 JP) contributed to the decline. Notable is the big divergence in the Macau-based casino operators: While Wynn Macau (1128 HK) closed near post-IPO highs, Sands China (1928 HK) slumped on weak earnings. Against weakness in U.S. gamer Zynga, Japanese gamer and 12/2011 IPO Nexon (3659 JP) closed the week near a new post-IPO high.

Key IPOX Strategies Returns YTD 2012:

Ticker (BBG/Reuters)Return


YTD 2012Name
IPGLC (USD)0.7714.33IPOX Global Comp
IPGL1001.1114.66IPOX Global 100
IPGL500.2018.25IPOX Global 50
IPGL300.1315.80IPOX Global 30
IPXO1.8519.26IPOX U.S. 100
IPXT1.6917.93IPOX U.S. 30
IXTE (EUR)2.271.94IPOX Europe 30
IPXUJPEU (EUR)1.874.83IPOX Europe 50
IPXUEM-0.3314.63IPOX Emerging Mkts.
IPTA-1.2021.59IPOX Asia-Pacific 30
IPXUCHCP-1.1613.96Chin IPOX Comp.
CNI0.0213.01China IPOX 20
IPXUCAUP0.3712.58China IPOX Comp.
IPXULATT1.3313.41IPOX LatAm 20
IPXK30K (KRW)-2.04-4.83IPOX Korea 30

Why choose IPOX to close the IPO/spin-off asset allocation gap?
§ Proven: Real-time performance over market cycles

§ Scalable and Stable: Clearly defined Philosophy

§ Patented: Index Technology

§ Best in Practice: Support and Research

· Most significant IPOs launched (Week 04/24/12):

CompanyTickerReturn / IPO (%)
Acquity Group LtdAQ US-4.17%
Alpek SAB de CVALPEKA MM4.47%
Branding China Group Ltd8219 HK4.04%
Brunello Cucinelli SpABC IM49.68%
BTG Pactual Participations LtdBBTG11 BZ0.00%
Charm Care Corp KK6062 JP26.32%
China Zhongsheng Resources2623 HK0.00%
Cia de Locacao das AmericasLCAM3 BZ-0.67%
ClearSign Combustion CorpCLIR US7.00%
Edgen Group IncEDG US-13.64%
Envivio IncENVI US2.22%
Ginko International Co Ltd8406 TT12.88%
Haitong Securities Co Ltd6837 HK0.00% Co Ltd603000 CH73.60%
UNICASA Industria de MoveisUCAS3 BZ9.71%

During the busiest ECM week YTD, the average (median) IPO gained +10.48% (+3.4%) based on the difference between the week's close and the final offering price. Amongst the accessible deals, upside focus was on Italian Luxury fashion maker big-brand Brunello Cucinelli (BC IM). Brazilian Investment bank BTG Pactual, a BSBR-like unit offering, had a disappointing debut. U.S. IPOs started mixed to lower with no love for China-linked IPOs in the U.S. (NYSEMKT:AQ). In the powerful A-Share IPO market, People.Cn (603000 CH), the website of the website of the China Communist Party newspaper The People's Daily, surged in huge volume

· The Week ahead - U.S. IPOs back to dominate:

CompanyCodeCountryLead Manager
Carlyle GroupCG USU.S.A.GS, CITI, UBS
Pacific Coast OilROYT USU.S.A.BAML, CITI

IPOs of U.S. domiciled deals are back in the spotlight during the upcoming week: Carlyle Group (NASDAQ:CG), the U.S. private equity firm, offers non-voting units to the masses. It follows incumbents Blackstone (NYSE:BX), Fortress Investment Group (NYSE:FIG), recent OakTree Capital (OAK: -7.42%), Apollo Global (NYSE:APO) or Och-Ziff (NYSE:OZM). With no proceeds going to growth, apparel maker/distributor Tilly's Inc. (TLSY) pursues a capital structure event by selling a big 29.63% of the firm. Terms imply a valuation of 0.75-0.91 of 12-month sales, a 12-25% discount to listed Abercombie&Fitch (NYSE:ANF).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.