UNCOMMON IPO INDEX

Digital & Tech companies building the future
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Index description

Uncommon IPO Index is the first global benchmark for companies based on innovative business models that have recently gone public (IPOs).

The index is comprised by companies that, through a creative and solid way, transform the economy and people’s lives. This has an impact in the growth of its economic activity and price listing, which undergoes through exponential increases.

The selection of companies and their presence in the index is defined based on: quantitative financial criteria, qualitative criteria on business model and uncertainty criteria.

Uncommon IPO Index Performance

Updated to 08/31/19

Basic information

  • CAGR 36,89%
  • Volatility 22,68%
  • Inception date 03/31/2015
  • Number of holdings 33

Top 5 holdings

  • Carbon Black Inc 4,81%
  • Alteryx Inc 4,69%
  • Impinj Inc 4,02%
  • Carvana Co. 3,75%
  • Snap Inc 3,65%

Index performance

20152016201720182019
Uncommon IPO Index16,93%16,74%53,68%54,96%23,21%
S&P500 (SPY)1,30%12,00%21,70%-4,56%18,14%

How it works

Uncommon IPO Index is built based on financial criteria, business model, and uncertainty.

First, a categorization of all IPOs has been made using the financial standard by industry, sector, and sub-sector. From this categorization, and analysis has been conducted to define which of them enter the index.

The general idea is that both the classification and the analysis criteria are fixed, validated, and simple to apply.

The first analysis is based on 3 pillars:

  • Opportunity territories in the industry / sector. We have identified challenges, and specific opportunity territories for each type of industry and sector, and which (given to their specific characteristics) have a great growth potential.
  • Company Business model. We apply a classification of 30 business models that, combined with the territories of opportunity, make up a solid value proposition.
  • Enhancing or attenuating factors. Finally, we apply a filter based on factors that can have a positive or negative impact on business development, such as geographical factors, technological adoption or customer typology, among other things.

A quantitative financial analysis is applied to the selected IPOs, which takes into account absolute variables on the financial statements of companies and its price. These last two criteria aim to reduce uncertainty.

Company distribution (allocation) in the index is done in an equitable way, that is, it is a balanced index, and a monthly rebalancing is conducted. Known companies and very large offers have the same importance as others that are unknown and of smaller quantitative parameters.

We eliminate complexity and risk, favoring a certain order, we are aware of chance in the markets, tail risks, materializations of chaos and the limits of our awareness method regarding unforeseeable future events.

Articles

If you want to know more about Uncommon IPO Index, we will be sharing articles that offer an analysis of the index and the companies that are part of it.

“Uncommon IPO Index is born” {02/02/19}

Go Daddy, a company that has gone through ‘Uncommon IPO Index’ {02/20/19}

 

Contact

If you are interested in the work behind Uncommon IPO Index, either because you are an investment fund, a consultant, a family office or any other type of stakeholder linked to professional financial management and / or innovation, feel free to send us a message at info@uncommonfinance.com

 

 

Risk and performance disclosure

Past performance does no guarantee future results. The performance data quoted represents past performance and current returns may be lower (very likely) or higher (less likely). The return on the investment and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.The investor should carefully consider the investment objectives, risks, charges and expenses before investing.

This is synthesized information but should not be used as the sole working tool for making investment decisions about the companies listed on this page. It is an informative page (only that).