Barron’s: IPOX® CEO Josef Schuster on Navigating IPO Allocations and Timing
In a feature on the return of IPO momentum, Barron’s examines the surge in new listings and the challenges facing investors amid rising valuations and volatility. More than 150 private companies have gone public this year, raising $28.5 billion — already outpacing the past two years. First-day gains are averaging 26%, the strongest since 2020, with standout performers in sectors such as artificial intelligence, fintech, and infrastructure. However, not all IPOs have fared well, with several high-profile debuts trading below their offering prices.
The article highlights the difficulty individual investors face in accessing hot IPOs, given that allocations are typically reserved for institutional clients and hedge funds. Early trading remains turbulent due to small public floats, lock-up expirations, and delayed analyst coverage. Historical data also shows that many IPOs underperform broader market benchmarks over the long term.
IPOX® Founder and CEO Josef Schuster emphasized a disciplined approach, noting: “The initial allocation game is for hedge funds… Let the market cool and then you can try and pick winners.”
His perspective underscores IPOX’s strategy of identifying long-term winners after early volatility, reinforcing our focus on sustainable growth rather than short-term speculation, with the IPOX®-tied First Trust U.S. Equity Opportunities ETF (Ticker: FPX) currently sitting at record levels after gaining 36% YTD.
Read the full article by Paul R. La Monica on Barron’s: IPO Mania Is Back. How to Invest and Avoid the Froth.
