During another week of no Greek debt deal, global equities rose anew with the IPOX Strategies benefiting most. With Facebook Inc. now in the U.S. pipeline, the underlying index to the U.S. IPO ETF (FPX) closed at the highest level since its inception in 01/1989. More U.S. IPOs are set for public debut.
Fact of the week: "If GOOG were FB, it'd IPO'd @ USD 300".
- For the second week in a row, IPOX Alternativ Beta records massive absolute and relative gains:The IPOX Alternative Beta Strategy Portfolios again rose sharply vs. the benchmarks with the IPOX Global 50 (IPGL50) surging +4.07% to +12.73% YTD, outperforming benchmark MSCI World (MXWD) by a massive +208 bps. Performance within the IPOX Regional Strategy universe continued to confirm the global picture: In the United States, the IPOX U.S. universe (ETF: FPX) rose +3.86% to +10.97% YTD, beating the S&P 500 (SPX) by +169 bps, and closing on the highest level since the index's inception in 01/1989. In Europe, the IPOX Europe 50 (IPXUJPEU) rose +4.07% to +11.35% YTD, a +106 bps. performance jump vs. benchmak Stoxx 50 (SX5P), while the IPOX Asia-Pacific 30 (IPTA) rose +2.30% to +11.23% YTD, outperforming the MSCI Asia-Pacific (MXPC) by +206 bps. Upside focus within IPOX Emerging Markets remained on the huge momentum in the IPOX Latin America universe (IPXULATT: +5.50% to +21.23% YTD).
- In individual equities, the strongest performers were some of the largest recent IPOs and spin-offs with 05/2011 IPO Glencore International (GLEN LN: +13.45%) gaining on its planned full takeover of 2002 IPO Xstrata Plc (XTA LN: +16.21%). 12/2010 IPO General Motors (GM: +7.43%) rose as the company climbed back on top of U.S. auto sales rankings. Groupon (GRPN: +21.94%), Zynga (ZNGA: +33.23%) or Gree Inc. (3632 JP: +20.65%) surged on Facebook's (NASDAQ:FB) IPO filing, while 12/2011 Japanese gaming IPO Nexon Inc. (3659 JP: +1.53%) traded only slightly higher, remaining -12.69% below its IPO price.
Key IPOX Strategy Returns YTD 2012:
|YTD 2012 (%)||Name|
|IPGLC (NYSEARCA:USD)||3.23||12.64||IPOX Global Comp|
|IPGL100 (USD)||3.93||11.55||IPOX Global 100|
|IPGL50 (USD)||4.07||12.73||IPOX Global 50|
|IPGL30 (USD)||4.14||11.10||IPOX Global 30|
|IPXO (USD)||3.86||10.97||IPOX U.S.100|
|IPXT (USD)||4.12||9.24||IPOX U.S. 30|
|IXTE (EUR)||4.01||10.51||IPOX Europe 30|
|IPXUJPEU (EUR)||4.07||11.35||IPOX Europe 50|
|IPTA (USD)||2.30||11.23||IPOX APAC 30|
|IPXUEM (USD)||2.88||15.69||IPOX Emerging|
|IPXUBRIC (USD)||3.79||16.72||IPOX BRIC 25|
|IPXUCHCP(USD)||1.02||13.71||IPOX China Com.|
|CNI (USD)||0.91||10.03||China IPOX 20|
|IPXUCAUP(USD)||0.72||4.79||China IPOX A|
|IPXULATT(USD)||5.50||21.23||IPOX LatAm 20|
|IPXK30K (KRW)||1.49||1.34||IPOX Korea 30|
Most significant IPOs launched (last week)
|Company||Ticker||Return / IPO (%)|
|AVG Technologies NV||AVG||-18.19|
|Beijing Philisense Tech||300287 CH||7.93|
|Greenway Medical Tech||GWAY US||32.90|
|Matador Resources Co||MTDR US||0.00|
|Surya Esa Perkasa Tbk PT||ESSA IJ||77.05|
|Nam Hwa Construction Co||091590 KS||36.67|
|US Silica Holdings Inc||SLCA US||-5.18|
- 8 global IPOs launched last week with the average (median) IPO gaining 16.52% (+4.47). The weeks' largest IPO (Dynamic Offshore) was pulled on a pre-IPO takeover by Sandridge Energy Inc. (SD US).
Week Ahead (02/06/2012):
|EPAM Systems||EPAM||U.S.||BCLY, UBS|
|Roundy's Parent||RNDY||U.S.||CS, JEFF, JPM|
|Erickson Air-Cr.||EAC||U.S.||Stifel Nicolaus|
|GSE Holding Inc||GSE||U.S.||FBRCAP, WBC|
|Synacor Inc||SYNC||U.S.||BAML, CITI|
|Brasil Travel||BTUR3 BZ||Brazil||CS, BARCBK|
|FX Alliance Inc||FX||U.S.||CITI, GS, JPM|
|Perfect Shape||1830 HK||H.K.||EVERBRIGHT|
- Good stock market momentum should again be supportive for this week's upcoming IPOs. Focus is again the U.S. market with at least 9 companies set to launch. Most upside focus is on tech-related IPOs, including EPAM Systems (EPAN US) and Synacor Inc. (SYNC US).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.