The IPOX® Week #759
IPOX® Indexes outperform ahead of U.S. elections; Rise in Yields weighs.
IPOX® Canada & IPOX® MENA ECM benchmarks at All-Time Highs.
Reddit, Applovin, Rubrik, GE Vernova, UCB BB lead Oct. IPOX® ETF ranking.
Amid U.S. Election week, ECM Deal Flow only seen in India.
IPOX® INDEXES: Weak U.S. unemployment numbers did little to stem more losses in the global fixed income markets ahead of the U.S. election with yields on U.S. government bonds on the long end jumping to the highest level since July 1st. Amid earnings and month-end re-balancing, this weighed on global equity markets (VIX: +7.62%) and the IPOX® Indexes with the IPOX® 100 U.S. (ETF: FPX) – most tracked gauge for U.S. IPO performance - shedding -0.90% to +16.47% YTD, +47 bps. ahead of the S&P 500 (ETF: SPY). Weakness extended to Markets abroad with IPOX® International (ETF: FPXI) declining by -0.84% to +14.78% YTD, while more losses across Europe’s Nordic region pressured the IPOX® 100 Europe (ETF: FPXE) to a loss of -0.99% to +16.57% YTD, both outperforming their respective benchmarks as well.
IPOX® CANADA AND IPOX® MENA AT ALL-TIME HIGHS: Correct positioning across key earnings achievers and gains across perceived ECM corporate action targets propelled the highly liquid IPOX® Canada (ICDX) to its all time high. The benchmark for Canadian ECM extended to its massive +6.11% October gain and added +1.25% to +28.99% YTD on Friday, trouncing the TSX benchmarks.
NOTABLE PORTFOLIO MOVERS FROM OCTOBER 2024: In what was a strong relative month for the IPOX®-linked ETFs (FPX, FPXI, FPXE), a number of portfolio holdings stood out: With many firms still untracked in benchmarks, top of the list ranked Next Generation U.S. tech stocks, such as social media stock 03/2024 IPO Reddit (RDDT US: +80.98%), AI-solutions firm AppLovin (APP US: +29.75%) and 04/24 IPO infrastructure software provider Rubrik (RBRK US: +28.34%). Amongst the Alternative Energy Thematic exposure, we also note big gains in Spin-offs GE Vernova (GEV US: +18.31%) and Siemens Energy (ENR GY: +13.49%) which continued its powerful turnaround. Select health care exposure in focus included CA-based Revolution Medicine (RVMD US: +17.97%), London-based Verona Pharma (VRNA US: +17.94%) and Procept Bio, all traditional IPOs entering U.S. trading over the past few years. And then there is serial IPO acquirer UCB BB (UCB BB +9.14%), a member of IPOX® International (ETF: FPXE) and IPOX® 100 Europe (ETF: FPXE): The European posterchild biotech focuses on the treatment of central nervous system disorders and inflammatory diseases. Its shares rose +9.14% last month, contributing significantly to fund outperformance.
Amongst unseasoned Financials exposure tracked in IPOX®, we note the big month for P/E firm TPG (TPG: +17.58%), Canadas Brookfield Asset Management (BAM US: +12.16%) and U.S. specialty Financial Jackson Financial (JXN US: +9.14%). Weak earnings, higher rates perceived to negatively affect mortgage demand, adverse weather and profit taking hit select IPOX® Holdings including H.K.-traded vaping technology provider Smoore (6969 HK: -21.24%), Chicago-based biotech AI play Tempus AI (TEM US: -21.17%), insurance provider Oscar Health (OSCR US: -20.79%), Germany’s defense firm Renk Group (R3NK GY: -16.10%), H.K.’s JS-Global Spin-off home appliances maker SharkNinja (SN US: -15.18%), U.S. mortgage provider Rocket Cos (RKT US: -16.10%) and re-insurance provider Bermuda-based Hamilton Insurance (HG US: -9.93%).
ECM REVIEW AND OUTLOOK: Amid U.S. election week, global ECM deal flow is expected to be light. In any case, please check in on www.ipox.com or visit our social media (Linkedin) for updates.
