When the market gets pummeled, like today, active managers who follow an index do their best to avoid doing worse than the index. This means they dump shares that aren’t going to do well over the short run (using the market level as a reference) because it can hurt their performance numbers.
I am not a big IPO fan to begin with. Usually, it’s private owners who are heavily obligated to feeding a growing negative cash flow situation who want someone to take the “hot potato” at an inflated price. They are selling the sizzle so others take the obligation off their hands at extremely h
