The IPOX Strategies recorded big relative gains across all global regions towards month-end as major benchmarks consolidated and China-linked exposure slumped anew. No significant IPOs priced, traded and upcoming. Japan Airlines (9201 JP) sets indicative price range for massive re-IPO.
· Key IPOX Strategies record big relative gains across all of the IPOX universe:Despite strong declines in over weighted China-linked exposure, the IPOX Global 50 (IPGL50), fell just -0.24% to +13.00% YTD on the week, outperforming benchmark MSCI World (MXWD) by another +44 bps to +544 bps. YTD. The IPOX Global 50 (IPGL50), key gauge for the performance of the largest and most successful global IPOs and spin-offs over a four-year rotational cycle, benefited from a great relative week in the IPOX U.S. (IPXO, IPXT), IPOX Europe (IXTE, IPXUJPEU) and IPOX Asia-Pacific (IPTA) universe. Through modified stock selection, the IPOX Strategies remained unaffected by the continued slump in social networker Facebook (FB: -6.96%) or H.K. jeweler Chow Tai Fook (-6.55%). The most recent key global IPO, hospital operator IHH Health Care (IHH MK: +2.56%) rose to near a post-IPO high after good earnings. Within the IPOX Regional universe (IPXO, IPXT), the IPOX U.S. 100 (ETF: FPX) was the best performing U.S. benchmark, gaining +0.83% to +17.19% YTD on strength the IPOX heavyweights, including car maker General Motors (GM: +0.80%), credit card processor Visa (V: +1.26%) and Buffett-backed stocks, including discount retailer Dollar General (DG: +2.84%), refiners Phillips 66 (PSX:+1.55%) and Marathon Petroleum (MPC: +6.15%) At the same time, the narrower and large-cap centric IPOX U.S. 30 (IPXT) recovered strongly, gaining +11 bps. vs. the IPOX U.S. 100 (IPXO) to +16.34% YTD. The IPOX Europe universe (IXTE, IPXUJPEU) rose anew, with the broad IPOX Europe 50 (IPXUJPEU: +0.50%) beating benchmark Stoxx 50 (SX5P: -0.96%). A big rise in global miner and IPOX heavyweight Glencore International (GLEN LN: +5.20%) on Qatar/Xstrata helped. Spanish exposure rose, with embattled Financial Bankia (+13.17%) in focus. Specialty IT Spanish travel reservation systems operator USD 9.8bn Amadeus IT Holdings (AMS SM: +2.66%) gained to levels not seen since pricing a private placement of 6.7% of its shares outstanding three weeks ago. Across the developed Asia-Pacific universe, the IPOX Asia-Pacific 30 (IPTA) extended the relative gains to a 5th consecutive week with the index spread vs. benchmark MSCI Asia-Pacific (MXPC) rising by a +140 bps. to a massive +1349 bps. YTD, underlying yet again the asset allocation potential of Asia-ex China aftermarket IPO/spin-off investing. Weakness across the high-beta H.K. traded casino group Wynn Macau (1128 HK: -5.92%) and embattled IPOX heavyweight Financial Dai-Ichi Life (8750 JP: -7.00%) was mitigated by a good relative week in Singapore's CapitaMalls (CMA SP: +0.30%), USD 19.2bn fashion group Prada (1913 HK: +3.02%) or semi-conductor maker Avago Technologies (AVGO: +1.44%). Japan's snack food maker USD 2.5bn Calbee (2229 JP: +5.63%) rose to a new post-IPO high. Mainland China markets remained under pressure with the Shanghai Composite (SHCOMP: -2.13% to -6.91% YTD) falling for another week on continued gloom over domestic economic prospects. China-linked IPOX exposure slumped as a consequence, but outperformed the benchmark for a second week in a row. For example, the IPOX China 20 (CNI: -3.56%) rose +52 to +0.91 bps YTD. vs. benchmark HSCEI Enterprise (HSCEI: -4.08%). Financials linked to the Chinese mainland suffered most, with USD 5.6bn Evergrande Real Estate Group (3333 HK: -10.03%) and heavyweight Agricultural Bank of China (1288 HK: -6.84%) in focus. Interesting is the resilience of the two latest U.S. traded China-IPOs with small-caps including consulting firm Acquity Group (AQ US: +7.86%) and online retailer VipShop (VIPS US: +20.48%) recording a big week.
· IPOX Long-only Strategy Returns YTD 2012:
|Ticker (BBG/Reuters)||Week||Q2 12||YTD 12|
|IPOX Global 50 (IPGL50) (NYSEARCA:USD)||-0.24%||-8.13%||+13.00%|
|MSCI World (MXWD)||-0.68%||-6.35%||+7.56%|
|IPOX U.S. 100 (IPXO||+0.83%||-5.23%||+17.19%|
|IPOX U.S. 30 (IPXT)||+0.94%||-3.67%||+16.34%|
|S&P 500 (SPX)||-0.32%||-3.29%||+11.85%|
|IPOX Europe50 (IPXUJPEU) (EUR)||+0.50%||-10.75%||+2.56%|
|IPOX Europe30 (IXTE) (EUR)||+0.80%||-12.33%||-1.05%|
|STOXX 50 (SX5P) (EUR)||-0.96%||-3.16%||+5.88%|
|IPOX Asia-Pacific 30 (IPTA)||-0.86%||-5.69%||+16.55%|
|MSCI Asia-Pacific (MXPC)||-2.26%||-6.89%||+2.94%|
|IPOX China 20 (NYSE:CNI)||-3.56%||-8.97%||-5.79%|
|Hang Seng Enprs. (HSCEI)||-4.08%||-10.12%||-6.60%|
|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 traded (Week 08/27/12):
|Company||Ticker||Return / IPO (%)|
|No significant IPOs priced and traded|
No significant IPOs priced and commenced traded during the last week.
· Book Building in Japan Airlines (9201 JP) starts:
|No significant IPOs expected to priced and trade|
No significant global IPOs are lined up for the upcoming week. In what promises to be an active Q4 for global IPOs, Japan Airlines (9201 JP) starts book-building for its massive max. USD 8.44bn IPO at a tight indicative price range of JPY 3500- JPY3790. Amid a big valuation discount to its peer (9202 JP), all proceeds of the GM-style (GM: +0.80%) re-IPO go to the government, which bailed out the firm in 2010.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.