Jason Ye
Director, Strategy Indices, S&P Dow Jones Indices
The Potential Value of U.S. Equity Allocation to Chinese Investors
The Chinese financial market has continued to evolve and mature over the past decade. More and more domestic Chinese investors are starting to take note of investment opportunities from global markets. What are the potential benefits of allocating globally for Chinese investors? In this blog, we will use the CSI 300 Index as a proxy…
Special Purpose Acquisition Companies (SPACs) – Part IV
In our previous blog, we’ve shown that SPACs tend to be small- and micro-cap companies that have low liquidity. Following the same framework, in this blog we will analyze SPACs’ performance. We found that relative to S&P SmallCap 600®, active SPACs underperformed when seeking the target, delivered abnormal returns during the deal announcement period, and…
- Categories Equities
- Tags institutional investor, IPOs, SPACs, Special Purpose Acquisition Companies
- Categories
- Equities
Special Purpose Acquisition Companies (SPACs) – Part III
In our previous blog (part II), we introduced SPACs’ lifecycles, as well as the potential benefits and risks of investing in SPACs. In this blog, we will focus on SPACs’ liquidity. In general SPACs’ liquidity is poor when seeking the target, surges on the deal announcement date, and remains low relative to the S&P SmallCap…
- Categories Equities
- Tags institutional investor, IPOs, SPACs, Special Purpose Acquisition Companies
- Categories
- Equities
Special Purpose Acquisition Companies (SPACs) – Part II
In the previous blog, we introduced SPACs and discussed market trends that emerged given SPACs’ popularity. In this blog, we will discuss SPACs’ lifecycle, as well as the benefits and risks of investing in SPACs. SPAC Life Cycle There are three stages in a typical SPAC life cycle. 1. A SPAC’s IPO When SPAC sponsors…
- Categories Equities
- Tags institutional investor, IPOs, SPACs, Special Purpose Acquisition Companies
- Categories
- Equities
Special Purpose Acquisition Companies (SPACs) – Part I
SPACs have been raising funds faster than ever before. In 2020, SPACs raised close to USD 100 billion in public offerings, which is more than in the prior 10 years combined (see Exhibit 1); the average IPO size also doubled from 2019 (see Exhibit 2). On July 22, 2020, Bill Ackman’s Pershing Square Capital Management…
Quality Premium Needs Long-Term Investment Horizon
The quality factor has been outperforming the S&P 500® YTD, an accelerating trend in place since 2019.[i] In the small-cap space, however, quality underperformed the S&P SmallCap 600® in 2019 (see Exhibit 1). Despite this short-term divergence, quality has exhibited consistent premium in large caps and more profoundly in small caps throughout its history. To…