FYI: Bloomberg’s IPO Index is a cap-weighted index made up of companies that have gone public within the last year. Below is a chart highlighting the performance of the Bloomberg IPO index versus the S&P 500 since the S&P’s bull market began on March 9th, 2009. After performing in-line with the S&P over the first two years of the current bull, the IPO index weakened significantly from early 2011 through mid-2012. From 2013 through late 2014, IPOs knocked it out of the park, and the IPO index nearly caught up to the S&P by October 2014. Ever since that October 2014 peak, however, it has been all downhill for IPOs. From its high in 2014 to its low on February 11th of this year, the IPO index fell 42.7%. Over that same time period, the S&P 500 only fell 10%.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/ipo-stock-performance-down-but-not-out/
