A Look at IPO Performance

We were recently doing some IPO analysis and decided to see how Bloomberg's IPO index has done versus the broader market over the last year and a half.  Below we highlight the performance of the Bloomberg US IPO index versus the S&P 500 since the start of 2007. 

As shown, Bloomberg's IPO index is down 0.88% (essentially flat) since January '07, while the S&P 500 is down 5.52%.  This outperformance from IPOs is somewhat surprising given the credit crisis and uncertainty that is out there, but it's important to note that the index is a lot more volatile than the S&P 500.  In mid-March, the index cratered much more than the S&P 500, but it has reversed sharply since then.

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