Here's some food for thought for those hedge funds and day traders pulling their hair out after another shocking day for market debutants.
Contrary to popular opinion, private equity-backed floats, and particularly those at the smaller end of the market, have fared well for punters this year.
New numbers from Deloitte show private equity's Appen, BWX, Eclipx Group, Gateway Lifestyle, Traditional Therapy Clinics, Costa Group, Link and Adairs have all posted gains for investors while only Advent Private Capital-backed Integral Diagnostics and Bain's MYOB drifted into negative territory.
Taking a slightly longer-term view - and considering notable and much-talked about misses like Dick Smith Holdings and Spotless Group - the 34 private equity-backed floats since the initial public offering window opened two years ago have gained 25.3 per cent on a weighted average basis, and 55.8 per cent on a simple average basis.
That includes IPOs from all the major houses; Quadrant Private Equity, Pacific Equity Partners, CHAMP Private Equity and Ironbridge.
Perhaps surprisingly, the best performed is Anacacia Capital-backed Appen, now worth $180 million, which listed through Bell Potter in January. Three profit upgrades and a bunch of new institutions joining the shareholder register have seen it gain more than 240 per cent.
Bell Potter could use the brownie points. Fundies were reeling on Thursday when the Bell Potter-backed Temple & Webster dropped 18 per cent on its first day as a listed company. It comes as another Bells float - McGrath Estate Agents - has also had a bad first week on the ASX boards.
Elsewhere, New-York based alternative investment management Highbridge Capital Management is understood to have quietly set up in Sydney.
The local operations will be run by vice-president of principal strategies Raymond Lam and focus on senior direct lending, junior capital and credit opportunities. Highbridge, owned by JPMorgan Asset Management, joins the likes of Babson Capital and Intermediate Capital Group which also have a local presence.
Sarah Thompson, Anthony Macdonald and Joyce Moullakis
The Australian Financial Review