SchusterWatch #789 (5/26/2025)
IPOX® 100 U.S. ETF (FPX) extends Relative Momentum as Markets fall.
IPOX® Global China (CNI) gains to +33% YTD. IPOX® Europe 100 ETF (FPXE).
CoreWeave (CWVE) soars, Merus (MRUS) rockets on “Home Run” drug.
IPO activity strengthens across global regions. More deals line up.
IPOX® WEEKLY REVIEW: The big jump in U.S. Yields above key levels after weak auctions and subsequent rise in equity risk (VIX: +28.48%) amid renewed uncertainties about tariffs pressured global equities ahead of the long U.S. Memorial Day weekend and month-end. positioning in the cross-section. However, we note more relative strength in the IPOX® Strategies on strong post-earnings Momentum and stock selection into sectors seemingly insulated from tariffs and global economic uncertainty.
In the U.S.,, the IPOX® 100 U.S. ETF (Ticker: FPX) fell -1.20% to +11.38% YTD, with the relative YTD spread vs. the S&P 500 ETF (SPY), Nasdaq 100 ETF (QQQ) and Russell 2000 ETF (IWM) rising to a massive +1222 bps., +1177 bps. and +1965 bps., respectively. With earnings season coming to a close, the skew in individual stock holdings returns declined with AI-plays CoreWeave (CRWV US: +27.95%) and Snowflake (SNOW US: +9.27%) leading the way to the upside, while social media site Reddit (RDDT US: -11.01%) and self-driving software maker Aurora Innovation (AUR US: -11.34%) ranked lowest towards the downside. In all, 78% of portfolio holdings fell with the average (median) equally-weighted stock declining by -2.57% (-2.91%), far lower than when compared to the applied market-cap weighted IPOX® 100 U.S. (BBG: IPXO), which is closely tracked by the “FPX” ETF.
In Markets abroad, we note another good week for the IPOX® International ETF (FPXI) and IPOX® 100 Europe ETF (FPXE), which added +1.59% and +0.82%, respectively. Strength was driven by outsized moves in Nordic-based high-end sportswear maker Amer Sports (AS US: +18.95%) after giving an exceptionally strong quarterly update, more upside in best-in-class China-based Frontier Lifestyle play Pop Mart International (9992 HK: +12.31%) and Japanese Financial Rakuten Bank (5838 JP: +9.81%). On the other hand, Japanese semiconductor memory maker Kioxia (285 A: -7.34%) fell sharply. We also note the big week in Dutch biotech Merus (MRUS US: +32.68%), a portfolio holding in the IPOX® 100 Europe ETF (FPXE). The stock soared towards the week-end after reported a “Home Run” on positive data from one of its ongoing cancer drug trials.
Across the Middle East, sentiment deteriorated anew, with the IPOX® MENA (IPEV) benchmark shedding -2.56% to -7.94% YTD on renewed weakness across Abu Dhabi and Saudi-traded exposure.
China remained a stand-out performer, with the actively managed 50-stock IPOX® Global China portfolio closing out the week at a fresh multi-year High, adding +3.04% to +32.90% YTD.
SPACS ARE BACK: The Index fell -0.33%. to -1.29% YTD last week. Quantum computing firm D-Wave (QBTS US: +53.47%) surged following the launch of its cloud-based quantum service,. In contrast, Hims & Hers (HIMS US: -12.25%) fell after a competitor introduced a more affordable weight-loss drug plan. No SPACs announced new merger targets or completed business combinations. However, SPAC IPO activity remained strong, with five new SPACs launching in the U.S. On the M&A front, 2022 deSPAC SatixFy Communications (SATX US: +41.18%), an Israeli chipmaker specializing in satellite communication systems, received shareholder approval for its proposed acquisition by Canadian aerospace firm MDA Space (MDA CN: +7.74%). The deal, initially announced in April at $2.10 per share (a 75% premium to the pre-announcement close), was later revised upward to $3.00 per share, representing a 150% premium to the original deal price.
ECM DEALS: Global IPOs rose last week, with 25 deals raising a substantial $8.4 billion. New listings performed well, as the average (median) IPO gained +18.32% (+18.88%) from its offer price to Friday’s close. In the U.S., sizable debuts included digital health company Hinge Health (HNGE US: +20.32%, $503m offer) and advertising software firm MNTN (MNTN US: +42.26%, $187m). Commenting on U.S. IPO market robustness, IPOX® CEO Josef Schuster was featured in a Bloomberg article. Other sizable listings in accessible markets included Hong Kong listings by EV battery giant CATL (3750 HK: +18.42%, $5.3b), Hengrui Pharmaceuticals (1276 HK: +20.13%, $1.3b), and life sciences firm Mirxes (2629 HK: +22.33%, $139m), German tax SaaS provider Innoscripta SE (1INN GR: -9.93%, $244m) and Malaysian discount retailer ECO-Shop (ECOSHOP MK: +5.83%, $225m) - the country’s largest IPO in 2025. Set for this week are 1) Dubai Residential REIT (DUBAIRESI AE, $584m), which was the topic of another Bloomberg article with comments by IPOX® CEO Schuster, 2) In Hong Kong food packaging firm Jihong Company (2603 HK, $93) and 3) GLP-1 diet drug biotech PegBio (2565 HK, $38m), both set to list on May 27th.
Visit the IPOX® Calendar for this week’s listing overview and read
The IPOX® Update for the latest IPO News.
