To apply “Indexing” to the market for New Listings globally.
Here at IPOX Schuster, our philosophy is to classify New Listings (IPOs, Spin-offs and respective M&A) into a separate equity sector for a limited, but substantial period of time after “going public” because New Listings share unique empirical dynamics.
The global range of IPOX Indexes is maintained on a real-time basis by highly experienced professionals.
Dr. Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. Before founding IPOX, he pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.
Founded in 2004, IPOX Schuster, LLC is the creator of the family of IPOX® Indexes.
The IPOX® Indexes characterize the aftermarket performance of New Listings (IPOs, Spin-offs and respective M&As) more accurately and comprehensively than any other index group. The profile of the respective IPOX Index truly reflects the Equity Capital Markets (ECM) Activity and the growth and innovation of the respective economy.
Our portfolios are constructed using a disciplined and transparent portfolio construction technology.
IPOX Schuster LLC is the first and foremost provider of a comprehensive series of investment solutions focused on modeling exposure to New Listings.
More than $4 billion worth IPOX®-linked products, including a number of 5-star funds, have been launched worldwide since our inception.
The value of the IPOX Indexes highlighted on our IPOX.com are updated ca. every seven seconds. This helps visitors to follow the IPOX Indexes vis-à-vis other major indexes to better gauge overall market sentiment on an intra-day basis and determine if your IPOX-linked Financial Products track accurately.
The IPOX Deal Calendar tracks global deal flow and provides general descriptive information about a respective upcoming deal. It is updated dynamically and can be easily synchronized with your Google calendar to keep you up-to-date with the status of a respective New Listings.
We believe that the market for global New Listings as defined by IPOX is economically significant. Since 2000, for example, around 14,450 companies went public on the global exchanges. In the U.S. alone, for example, every four years, the size of the New Listings Market (IPOs and Spin-offs) equals 60% of the total market cap of the Russell 2000 Index. With its 4,800 constituents’ stocks as of January 2019, the IPOX Global Composite – the underlying for the IPOX Indexes – pools around $6.4 trillion worth of global stock market capitalization and between 10-20 percent of daily trading volume on the major global exchanges. New Listings (IPOs, Spin-off and respective M&A) also form the basis for index addition activity into the major equity benchmarks.
New Listings are subject to unique empirical dynamics up to at least four years after “going public”, on average. Some of these empirical features concern underpricing, short-run overperformance, a highly skewed long-run return distribution with few extreme winners driving positive performance, significant return differences when measuring returns of sub-groups of companies and the link between pre-listing accruals management and long-run stock price performance.
Indexing New Listings IPOX-style provides investors with a turnkey solution to access the potential asset allocation benefits associated with investing in New Listings. Moreover, there is a limited overlap between the IPOX portfolios and the conventional major benchmark portfolios.
Various types of IPOX-linked products are originated by a number of leading Financial Services firms in the United States and abroad and distributed through the various channels. Financial Products linked to IPOX include Exchange-traded-Funds, Mutual Funds, Separately Managed Accounts and Hedge Funds. Please contact us to receive more detailed information.
Linked to the IPOX 100 U.S. Index, the first IPOX-linked ETF launched on April 13, 2006 on the American Stock Exchange under the ticker symbol “FPX”. It has contributed to changing the way how advisors think about investing in New Listings. Assets tied to the “FPX” ETF, a 5-star (10 year) fund, have recently exceeded USD billion 1. Since launch, “FPX” has more than doubled the performance of the S&P 500 at only slightly higher level of risk.
Yes. IPOX-linked products have been features in the major media. Please see our media page for details. Team members also often appear in the media to provide expert advise related to the New Listings markets and respective deal flow.
“IPOX” stands for Initial Public Offering Indexes.
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