5 Biggest IPOs Hedge Funds Are Betting On

The US initial public offering (IPO) market has been quite active during the second and third quarter, raising the most value since the corresponding quarters in 2014. The third quarter 2018 had 60 IPOs raising $13.4 billion, while there have been 173 IPOs since the beginning of the year all through the end of September, which have raised $45.7 billion. This amount is by 45.5% bigger than the amount raised in the same period in 2017. Out of so many big IPOs, today we are going to take a look at the five biggest which have attracted the most attention from hedge funds in Insider Monkey’s database.

  1. Pivotal Software (PVTL)

Starting our top five with a San Francisco and Palo Alto-based software company, Pivotal Software (PVTL).  At the end of the second quarter, there were 21 hedge funds from Insider Monkey’s table bullish on the stock, collectively owning 4.10% of the company’s outstanding shares. Pivotal Software disclosed a first quarter net loss of $32.5 million (32 cents per share) on revenue of $155.7 million. Its revenue has risen by 28%  in the first quarter since it went public.

  1. 4. Far Point Acquisition (FPAC)

The next one is a blank check company, Far Point Acquisition (FPAC), which has intrigued also 21 smart investors from our database in the second quarter. The company was formed by former NYSE Group President Tom Farley and was sponsored by Daniel Loeb’s Third Point. Far Point Acquisition intends to focus on the companies in the financial technology sectors.

  1. Greensky (GSKY)

The third among the 5 biggest IPOs hedge funds are betting on is one of the biggest financial technology companies in the US, Greensky (GSKY). The company offers an easier way for banks and merchants to provide consumers with loans for home improvement projects using a simple smartphone app. 25 investors from our database were long this stock at the end of the second quarter, collectively owning 3.40% of the company’s outstanding shares.

  1. Dropbox (DBX)

At the end of June, there were 27 hedge funds with long positions in Dropbox (DBX), down by 8 from the first quarter 2018.  Dropbox (DBX) is a San Francisco based file hosting service company founded in 2007 that went public in March 2018. Those 27 investors collectively held around 2% of the company’s outstanding shares. For the second quarter fiscal 2018, the company disclosed a revenue of $339.2 million, up by 27% from the corresponding period in 2017.

  1. GS Acquisition Holdings (GSAH)

Number of hedge funds: 28

One of the biggest IPOs and the one with the most hedge funds bullish on it is GS Acquisition Holdings (GSAH), another blank check company. At the end of the second quarter, it had 28 smart money investors from our database with long positions in it. GS Acquisition Holdings (GSAH) which is sponsored by GS DC Sponsor I LLC, an affiliate of The Goldman Sachs Group Inc, and David M. Cote went public in June. The company plans to target companies in the industrial sector.

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