The Renaissance IPO Index has had a positive start to the third quarter, and this week reached its highest level since April 2022.
Prior to yesterday’s sell-off, markets rallied from the past week as a cool inflation report and positive comments from the Fed bolstered expectations of a rate cut in the 3Q. While it lags behind major benchmarks year to date due to strong trading from mega-cap tech, the IPO Index has returned +1.7% over the past week, strongly outpacing the S&P 500’s -0.8% loss.
The IPO Index constituents that have delivered the strongest recent trading represent a mix of businesses, led by financial and tech names.
Private equity giant TPG (TPG) leads the winners, jumping +10.5% over the past week, thanks to rate cut-related tailwinds in the financial sector. Mortgage insurance provider Enact Holdings (ACT; +6.9%) has also traded up on the recent developments.
Growth stocks have benefited from the renewed optimism as well, with several software and tech-adjacent names among the best recent performers, including US-based semiconductor play GlobalFoundries (GFS; +9.8%), retail trading app Robinhood (HOOD; +9.8%), customer engagement software provider Braze (BRZE; +8.5%), and marketing SaaS firm Klaviyo (KVYO; +6.9%).
Other constituents that have delivered strong recent performances include athletic apparel brand On Holding (ONON; +9.0%) and eyecare company Bausch + Lomb (BLCO; +5.3%).
The Renaissance IPO Index is the underlying index for the Renaissance IPO ETF (ticker: IPO).
