SpaceX IPO and Rising Equity Supply

Rising aggregate equity supply and euphoria are emerging as a risk in markets, approaching levels of oversupply with the upcoming mega-IPOs. Mega-IPOs introduce benchmark risk as new issues are fast-tracked into major indexes, requiring a top-down evaluation to determine action in portfolios. We are unlikely to participate in the upcoming Tech mega-IPOs as initial offerings have increasingly become liquidity events for existing investors.

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