Business & Finance
Dimensional PM on IPO Pipeline, Concentration Risks
Key Points
Joel Schneider, Dimensional’s Deputy Head of Portfolio Management for North America, says well-founded IPOs can attract strong interest regardless of broader market conditions, but investors should look beyond the initial pop: IPOs have historically tended to underperform the market afterward, making fundamentals and entry timing important. He notes that index providers add new listings on different schedules, so index-fund investors effectively delegate that decision to an index committee....
Joel Schneider, Dimensional’s Deputy Head of Portfolio Management for North America, says well-founded IPOs can attract strong interest regardless of broader market conditions, but investors should look beyond the initial pop: IPOs have historically tended to underperform the market afterward, making fundamentals and entry timing important. He notes that index providers add new listings on different schedules, so index-fund investors effectively delegate that decision to an index committee. He speaks with Romaine Bostick on "The Close." (Source: Bloomberg)