Renaissance Capital (US company)

Renaissance Capital LLC
Limited liability company
Industry Finance
Founded 1991 (1991)
Founder William K. Smith
Kathleen Shelton Smith
Linda R. Killian[1]
Headquarters Greenwich, Connecticut
Area served
 Worldwide
Products FTSE Renaissance Global IPO Index Series
Services Institutional research
Website renaissancecapital.com

Renaissance Capital is a global provider of institutional research, money management, and index design services focused on newly public companies.[2] The company was founded in 1991 and is headquartered in Greenwich, Connecticut.[3]

The firm's institutional research service covers newly public companies worldwide. Coverage is initiated prior to the initial public offering (IPO) and continues beyond the IPO during the period when underwriters are restricted from providing research.

Background

Renaissance Capital was founded in 1991 in the town of Greenwich, Connecticut. Its founders were three friends from the Wharton School of the University of Pennsylvania who met in the 1970s – Linda Killian, William Smith and Kathleen Shelton Smith. The latter two are husband and wife.[3]

Services and products

IPO Home

Renaissance Capital developed the web portal IPO Home, a tool for IPO traders and investors allowing them to track the performance of IPOs subsequent to their launch. Among the sections featured by the site are a Breaking News section, a Featured IPO section, and an IPO Calendars section.[4]

IPO Index series

In 2005, Renaissance Capital and FTSE Group launched the FTSE Renaissance IPO Index Series. As the series expanded to encompass a growing number of developed and emerging markets, its name was changed to the FTSE Renaissance Global IPO Index Series. According to a FTSE fact sheet, "Qualified IPOs are added to the indices at the end of their first trading day and removed after approximately two years, when they become seasoned equities."[5][6]

IPO Plus Aftermarket Fund

The IPO Plus Aftermarket Fund, an almost exclusively IPO-based mutual fund, was approved by the U.S. Securities and Exchange Commission in 1998 and is notable for being one of the first mutual funds of its kind.[7] In 2006 the fund managed $20 million in assets.[4] As of 2011, 1999 was the fund's best year, achieving a return of 115%. Its worst year was 2001, when it suffered a 52% loss.[8]

In an interview with Money Magazine, cofounder Kathleen Smith elaborated on Renaissance Capital's IPO selection methodology as involving both short- and long-term considerations. In the short term, the newly public company's potential is evaluated in relation to the overall appeal of its sector as well as in relation to the IPO record of other recently gone-public companies in its valuation bracket. In the long term, greater emphasis is placed on a fundamental analysis of the company as well as on analysis of the ownership interest among the management.[9]

IPOs for Everyone

In 2001 Renaissance cofounders Linda Killian, Kathleen Smith and William Smith published IPOs for Everyone: The 12 Secrets of Investing in IPOs (John Wiley & Sons), a comprehensive guide to the IPO market for new investors.[10][11] Mario Gabelli called the book, "The Rosetta Stone for individual investors who want to understand how IPOs fit into our free market capital system and how to profit from IPOs."

See also

References

  1. ↑ "Our Professionals". Retrieved 13 April 2010.
  2. ↑ Steiner, Sheyna (2 March 2012). "Three Reasons You Can't Buy IPO Shares". Fox Business. Retrieved 15 May 2012.
  3. 1 2 Tergesen, Anne (10 December 1998). "Dealing Yourself into the IPO Game". BusinessWeek. Retrieved 15 May 2012.
  4. 1 2 Penn, David (December 2006). "www.IPOHome.com". Technical Analysis of Stocks & Commodities. Technical Analysis Inc. 24 (13). Retrieved 17 May 2012.
  5. ↑ "Factsheet: FTSE Renaissance Global IPO Index Series" (PDF). FTSE Group. 2011. Retrieved 17 May 2012.
  6. ↑ "FTSE Renaissance IPO Index Series expanded". ETFI Asia. 27 September 2011. Retrieved 17 May 2012.
  7. ↑ "Firm to Launch Mutual Fund Just for IPOs". The Los Angeles Times. Bloomberg News. 24 January 1998. Retrieved 15 May 2012.
  8. ↑ Hogan, Mike (9 July 2011). "The Little Guy's Guide to the IPO Frenzy". Barron's. Retrieved 17 May 2012.
  9. ↑ Washington, Laura (1 May 2000). "Making Money in IPOs A fund that invests in initial public offerings shows how patience can pay off". CNN Money. Retrieved 16 May 2012.
  10. ↑ Reeves, Scott (14 January 2005). "Stalking The Killer IPOs". Forbes. Retrieved 16 May 2012.
  11. ↑ "IPOs for Everyone: 12 Secrets to Investing in IPOs". CMA Management. Society of Management Accountants of Canada. 1 July 2001. Retrieved 16 May 2012. IPOs for Everyone is a comprehensive look inside this specialized market, offering investors the 12 secrets to investing in IPOs.
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