NBXG - If Risk-On And IPOs Are Back On NBXG Is A Must Buy

2024-03-27 11:21:35 ET

Summary

• The successful debut of Reddit stock last week means the IPO market may finally be thawing out, too.
• And if that's the case, equity CEFs which include a good chunk of private equity in their portfolios, like BlackRock's BSTZ and BIGZ, should be beneficiaries.
• But for me, the safest pure play to take advantage of a rebound in IPO's coming to market, would be Neuberger Berman Next Generation Connectivity Fund Inc.
• All of these CEFs that include private equity in their portfolios trade at large discounts, primarily due to the risk associated with private & restricted equity.
• But if risk-on is back on in the markets, then the IPO pipeline could be heating up, too, and I believe the NBXG CEF has the most to gain with that turnaround.

One area of the equity markets that has been in the deep freeze for years now, has been in the private equity, pre-IPO market....

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