Video 5 - Value Perspective on: IPOs

Nick Kirrage, Fund Manager, Equity Value

Inherently sceptical of IPOs – why?

Just because somebody wants to sell, does that necessarily mean that you want to buy? Often not – risks are increased in IPOs as there is less financial history and considerable uncertainty around the specifics of the investment. Value investors tend to go for businesses that are out of favour – businesses don’t tend to float when they are out of favour which means that these offerings often don’t fit into a value investing mentality.