Mr. Toad's Wild Ride: The impact of underperforming 2020/2021 US IPOs
Eye on the Market, July 18, 2023
Mr. Toad's Wild Ride: The impact of underperforming 2020 and 2021 US IPOs on portfolio returns
For IPO investors, some of the substantial gains from the prior decade were wiped out by a flurry of poorly performing IPOs that were issued in 2020 and 2021.?There are several bright spots, including the strong performance of software and internet IPOs even when including 2020/2021 vintages.?In this special issue Eye on the Market, we look at the wild ride of IPO performance, the SPAC disaster, IPO flipping, insider lock-up expirations, striking findings on IPO performance erosion in healthcare and some data on financial sponsors with the best performing IPOs.
Michael Cembalest, JP Morgan Asset Management