Svmuu reports that with super IPOs from SpaceX, OpenAI, and others approaching, large U.S. mutual funds and passive index funds have already started adjusting their positions early. Some funds are increasing their cash holdings and considering reducing their existing large-cap tech stocks to free up allocation space for future new index constituents.
John Flood, Managing Director of FICC and Equities in Goldman Sachs’ Global Banking & Markets division, pointed out that historical data shows that ahead of the largest four IPOs in the U.S. market over the past few decades, equity mutual funds had all raised their cash reserves. He stated that the market is reassessing the impact of large IPOs on the index system and capital flows.
Currently, index providers such as the Nasdaq 100 Index (NDX), the S&P 500 Index (SPX), and FTSE Russell are rapidly advancing new rules to accelerate the inclusion of ultra-large-cap newly listed companies into their indices. This means that future newly public companies with trillion-dollar valuations, like SpaceX, OpenAI, and Anthropic, could be added to major benchmark indices within a very short time after their listings.
Besides SpaceX, OpenAI and Anthropic are also advancing their IPO plans. OpenAI’s valuation could exceed $1 trillion, while Anthropic’s latest fundraising valuation is also approaching this level. (Jin Shi)