Tribeca Portfolio Manager Hopeful For AU IPO Revival

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The ASX started 2023 on a positive note as the markets began to stabilise. However, the past weeks were rough for the ASX share market. The S&P/ASX 200 index peaked at 7,500 points in February, but by mid-March, it fell under 6,900 points, losing around 9 per cent of its value. Nevertheless, many still hope for an IPO revival to help the share market.

Many investment experts believe that the unexpected collapse of the SVB Financial Group further aggravated the stock market’s position, adding to the consistent pressures from the rise in interest rates. 

Sebastian Bowen, contributing writer for The Motley Fool, noted that “SVB’s collapse started something of a chain reaction, with the giant Swiss bank Credit Suisse following suit shortly after. Credit Suisse has since been acquired by its fellow Swiss bank UBS. But fears of financial contagion are well-entrenched now. So it’s this banking crisis, together with high-interest rates, that we can probably blame for the share market’s recent woes.”

Karen Towle, a portfolio manager at Tribeca investment and advisory firm, shared her thoughts on the emerging markets in a recent interview with AFR markets reporter Emma Rapaport. Towle, who co-manages Tribeca’s Special Opportunities Fund, expects investor confidence to return to emerging companies in the ASX.

Towle added, “Given the underperformance of emerging companies over the past 12 months, I expect that they will re-rate much more aggressively than the broader market. I’m very bullish about emerging companies at the end of this year.”

According to the portfolio manager, companies that do not have enough cash to sustain their operations should look into raising more money. Still, Towle warns that this may be extremely difficult at this time.

Towle shared that stocks in the infrastructure and travel sectors look promising, while supply chains and labour are becoming more freely available as borders reopen and immigration resumes. 

With these aspects, Towle believes that the IPO market will reopen, and when it does, many investors will rush to get their piece of the pie.

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