The Direxion Long/Short Global IPO Fund

Why IPOs?

IPOs have substantial economic significance, and are the lifeblood of global Equity Capital Markets (ECM) activity. On average, over $400 billion of market capitalization has been added through IPO and spin-off activity every year since 1995. The pipeline for the number of global IPOs is substantial – continually offering new opportunities.

For many investors and investment professionals, IPOs are coveted investments since they generally enter the marketplace at a discounted price to attract new investors. As a result, they can potentially provide above average profit potentail.

In addition, IPOs and new issues exhibit unique performance over the first several years, acting as a separate asset class. As a result, their addition to a portfolio of equities and fixed income may result in increased diversification and lower volatility.

Source: IPOX® Capital Management, LLC