How a $70B Fund Manager Thinks About Investing in IPOs 💵

do you care about how these companies go public like do you care about spack versus direct listing versus IPO i don't i only care about the quality of the underlying asset and what I think it can be worth 5 years from now now obviously I do care about the liquidity that I'm getting in the IPO Chimoth am I getting a million or 100 million or a billion as the float right that's number one and obviously I also do care about the percentage that is floating and I do care about the lockup those three elements are really important in terms of a company going public and how we think about participating give the listeners the guidance there so for the first thing bigger is better than

smaller correct so it's number one can I even buy it if the IPO is so small and we can't get a large enough position it doesn't really make sense for us so that would be point number one point number two is how much of the company is publicly floating bigger is better there as well correct you kind of get a truer price when a higher percentage of the company floats it's also most likely going to be less volatile and less susceptible to predatory pricing and manipulation and things like that chath you may know this i think LinkedIn went out at like 10% or something i remember it being really small yeah and a lot of us thinking like wow that is a small

percentage which ended up being very volatile i think 20% is in my opinion kind of a minimum so number two the float and then number three the lockup first is there one in a direct listing there may not be one you may get in that scenario to a truer price faster