What if you had invested $1,000 in these (other) IPO’s

The finance world was abuzz today about Twitter’s much ballyhooed IPO, which quickly rose from the starting price of $26 to $45, good for 73% over the listing price.  It looked all too easy, and one of the bloggers at Stocktwits (did they get an allocation of the IPO – they sure should have) dug up a nice chart from the folks at Mashable/Statista showing how much $1,000 invested in tech giants Amazon, Google, eBay, Yahoo, LinkedIn, and Facebook at their IPO price would be worth today… $1,000 worth of Amazon would be worth a staggering $239,000 in just over 15 years, all the way down to $1,000 in Facebook now worth just $1,269.

But… not being allowed to cherry pick trades like this in our business (although it would surely be interesting to show the compound growth of $1,000 invested in the largest growth CTAs since 1997 for comparison – maybe next week) , we thought an alternate view would be of interest, showing the current value of 6 other tech IPOs.

Turns out investing in tech IPOs is no sure fire bet…

Bust IPOs

(Disclaimer: Past performance is not necessarily indicative of future results)

And Statista’s for comparison.. (and to be fair, the author did say: Please note that this chart involves a fair bit of cherry-picking and is in no way meant to uncritically endorse internet IPOs.  For every successful tech IPO, one can find a couple of failed ones)

Boom IPOsChart Courtesy: Stocktwits
(Disclaimer: Past performance is not necessarily indicative of future results)

 

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Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.

The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex, and is not intended as investment advice, or an offer or solicitation for the purchase or sale of any financial instrument. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. Opinions expressed are that of the author.

*The mention of specific asset class performance (i.e. +3.2%, -4.6%) is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.), and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship and self reporting biases, and instant history.

The mention of general asset class performance (i.e. managed futures did well, stocks were down, bonds were up) is based on Attain’s direct experience in those asset classes, estimates of performance of dozens of CTAs followed by Attain, and averaging of various indices designed to track said asset classes.

It should be noted that past market performance is not indicative of future market movement.No market data or other information is warranted by Attain Capital Management as to completeness or accuracy, express or implied, and is subject to change without notice.

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Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.