Strong IPO Performance

by: Bespoke Investment Group

The Bloomberg US IPO index measures the performance of stocks during their first publicly traded year that IPOd with a market value of at least $50 million. Below we highlight the performance of the IPO index so far in 2009. As shown, it is up 29.47%, while the S&P 500 is up just 1.47%. Strong IPO performance is definitely much more indicative of a bull market than a bear market, and investors have been bidding up shares of recent IPOs by quite a bit.

Below the chart we provide a table of the Bloomberg IPO index members. The four that are up the most from their IPO prices are Bridgepoint Education (NYSE:BPI), OpenTable (NASDAQ:OPEN), Rosetta Stone (NYSE:RST), and Duoyuan Global Water (DGW). Only 3 of the 14 index members are down from their IPO prices.