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Listening To Us On IPOs Could Save Your Assets

Dec. 17, 2021 9:57 AM ET
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David Trainer's Blog
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Our unconflicted and objective approach to IPO research protected investors from losing 39% of their assets in 2021. Figure 1 provides details.

The IPO warnings in a recent CNBC feature on our common-sense approach to research saved investors 16%.

Figure 1: Performance of IPOs/Direct Listings Published on in 2021: Through 12/15/21[1]

Ticker Company Publish Date Performance S&P 500 Performance Vs. S&P 500
HNST The Honest Company 5/4/21 -63% 13% -76%
BMBL Bumble Inc. 2/10/21 -54% 20% -74%
MQ Marqeta Inc. 6/7/21 -47% 11% -59%
HOOD Robinhood Markets Inc. 7/19/21 -49% 7% -56%
SQSP Squarespace Inc. 5/17/21 -40% 15% -55%
DIDI Didi Global Inc. 6/21/21 -49% 4% -53%*
COIN Coinbase Global Inc. 3/5/21 -32% 14% -46%
SG Sweetgreen Inc. 11/15/21 -41% 0% -41%
BIRD Allbirds Inc. 9/27/21 -31% 6% -37%
COMP Compass Inc. 3/29/21 -24% 11% -35%*
WRBY Warby Parker 9/13/21 -20% 8% -28%
GTLB Gitlab Inc. 10/8/21 -13% 7% -20%
DNUT Krispy Kreme 6/25/21 -2% 10% -11%
EDR Endeavor Group Holdings 4/28/21 12% 12% 0%
RIVN Rivian Automotive 10/25/21 8% 1% 7%
Average -30% 9% -39%

Sources: New Constructs, LLC and company filings.*Performance measured through date position was closed. We closed DIDI on 8/18/21. We closed COMP on 8/18/21.

All of our research leverages more reliable fundamental data that overcomes flaws with legacy fundamental datasets to provide a more informed view of the fundamentals of companies and a new source of alpha.

Our stock picks regularly earn a #1 ranking across multiple categories. Most recently in December, SumZero ranked us #1 in Last Twelve Months, Long, Value, Large-Cap, Small-Cap, and Consumer Discretionary.

This article originally published on December 16, 2021.

Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, sector, style, or theme.

[1] Performance of IPOs for which we published a report prior to the company’s IPO is tracked from the opening price for each IPO’s first trading day.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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