Q3 was a precarious but productive quarter in the IPO market with 63 deals priced. That compares to 83 in Q2 and 67 in Q1. We say precarious because the markets fluctuated quite a bit with the Russell 2000 down 7.4% during the quarter. We also had a couple of very large deals with Alibaba (BABA) at over $2B and Citizens Financial (CFG) over $3B.

Here is the breakdown of deals by industry:

Q4 welcomes us with mixed prospects - US growth is looking good despite rising interest rates and a stronger dollar. World growth prospects seem muted with China and the Eurozone not firing on all cylinders. But IPO filings keep rolling in and investors appear willing to buy them, even in a so-so market.The technology and internet sectors were low in Q3, probably due to some “crowding out” with Alibaba coming to market. Two days into Q4 we’ve already had 2 internet deals price.

To prepare for this quarterly Candygram, we went through all 673 companies in our universe and revamped their classifications, descriptions, and theme associations. Now we can provide more meaningful presentations of market activity, stock performance, valuation, and investment opportunities.

The figure below shows the top performing deals in Q3. The top two winners, ReWalk and El Pollo Loco, came as a surprise to many “professionals.” In the case of ReWalk, it priced weakly and opened quietly before being bought aggressively and making new daily highs on a regular basis.

El Pollo Loco got panned by many for lack of growth coupled with high debt, but the appetite for anything remotely like a Chipotle (CMG) created demand from investors willing to give LOCO the benefit of the doubt in terms of expansion plans.

Mobileye was hot from the start, aided by all the news and attention around “autonomous cars” largely promoted by Google. Assisted driving is a reality today and is already designed into just about all new cars since it promotes safety and lowers costs for the insurance companies.

Cyber-Arc Software joins the stream of enterprise IT security stocks that seem to all do well as stories of hacking, data loss, and attacks remain in the news. Enterprises have been increasing their annual spend on IT security every year for the past few, and yet problems persist. Other names like Imperva (IMPV) which focuses on DB security, Palo Alto Networks (PANW) for network security, and ProofPoint (PFPT) for email security have all done well and maintained their high valuations.

Biotechnology names were largely on the losing side of the equation due in no small part to the distant commercialization and revenue generation that is typical with drug development firms. 

We’ve written about Trupanion (TRUP) because the pet angle has been one generating interest as a new segment. Aratana (PETX) is another name in space that we’ve worked on. Trupanion is providing a pet healthcare insurance policy that is more granular and potentially more profitable than alternatives from much larger companies. We liked everything about the company and the deal except for the fact that as an insurance company, the margins are limited. In a niche market, this translates into a fairly small amount of profit potential for investors when compared to alternatives like Aratana which focuses on the drugs themselves, which carry much higher profit margins.

Other interesting names in the “loser” category include CareDx, which is really a device maker that helps monitor heart transplants and Roka BioScience, which focuses on diagnostics for detecting foodborne pathogens. All of these will take time to develop, but their weak performance post-IPO combined with their potential keeps them on our radar screen and adds them to our pipeline of potential research ideas.

We have included the full tables of the Q3 IPO activity by date, performance, and industry category after the brief company descriptions.

3Q IPO Company Descriptions

Travelport offers travel commerce services such as distribution, technology, payment, and other solutions for travel and tourism industry. It connects airlines and hotel chains with online and offline travel agencies and other travel buyers through its proprietary B2B travel commerce platform. The company was incorporated in 2006 and is based in Atlanta, Georgia.

CONE Midstream Partners owns, operates, acquires, and develops natural gas gathering and midstream energy assets. CONE Midstream Partners LP was founded in 2011 and is based in Canonsburg, Pennsylvania.

Cyber-Ark Software makes software that protects organizations from cyber attacks. Cyber-Ark enables its customers to secure, manage, and monitor privileged account access and activities. Cyber-Ark software can limit the breadth of access of Unix/Linux administrative accounts and restrict them from performing certain commands and functions; and privilege threat analytics, which profiles and analyzes individual privileged user behavior and creates prioritized alerts when abnormal activity is detected. Cyber-Ark Software Ltd. was founded in 1999 and is headquartered in Petach Tikva, Israel.

Citizens Financial Group operates Citizens Bank which provides consumer and commercial banking services. As of June 30, 2014, Citizens Financial Group operated approximately 1,230 branches and 3,215 ATMs in 11 states across the New England, Mid-Atlantic, and Midwest regions. The company was founded in 1828 and is headquartered in Providence, Rhode Island. Citizens Financial Group, Inc. is a subsidiary of The Royal Bank of Scotland plc.

Medley Management is an asset manager with over $3B of AUM with a focus on providing yield for investors while making loans to mid-market companies which they tend to hold to maturity. Medley Management Inc. is based in New York, New York.

Smart & Final Stores is a value-oriented food retailer operating non-membership warehouse-style grocery stores under the Smart & Final and the Cash & Carry banners. As of December 29, 2013, it operated 188 Smart & Final stores, including 69 Extra! stores; and 52 Cash & Carry stores. Smart & Final Stores, Inc. was incorporated in 2012 and is headquartered in Commerce, California.

Israel Chemicals is a specialty minerals company supplying potash, salt, fertilizers, bromines, and phosphoric acids. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel. Israel Chemicals Ltd. operates as a subsidiary of Israel Corporation Ltd.

Vitae Pharmaceuticals is working on a variety of drugs – most importantly for the treatment of type 2 diabetes; for alzheimer's disease. Vitae also has preclinical studies going for the treatment of autoimmune disorders, such as psoriasis, multiple sclerosis, rheumatoid arthritis, Behcet's disease, autoimmune uveitis, acute coronary syndrome and atopic dermatitis. The company was founded in 2001 and is headquartered in Fort Washington, Pennsylvania.

Grupo Aval Acciones Y Valores is a bank based in Bogotá, Colombia with a network of 1,374 branches and 3,674 ATMs. In addition to traditional retail banking they also offer a range of additional services including: pension and severance fund management, collection and payment solutions, general purpose loans, foreign exchange services, payroll loans, portfolio management, project finance, real estate escrow services, merchandise distribution; brokerage services, investment banking. Grupo Aval Acciones Y Valores S.A. was founded in 1870.

GWG Holdings buys and sells life insurance policies in the secondary marketplace in the United States. The company was founded in 2006 and is based in Minneapolis, Minnesota.

Alibaba is an online and mobile commerce company based in China consisting of a number of major properties including:  Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online business-to-business marketplace that focuses on global trade among businesses; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. Alibaba Group Holding Limited was founded in 1999 and is headquartered in Hangzhou, China.

ProQR Therapeutics is working on RNA-based therapeutics for the treatment of genetic disorders. Its lead product candidate is RNA-based oligonucleotide for the treatment of cystic fibrosis. The company was founded in 2012 and is headquartered in Leiden, the Netherlands.

Foamix Pharmaceuticals develops and commercializes foam-based formulations acne, impetigo, and other skin conditions. Foamix Pharmaceuticals Ltd. has development and license agreements Bayer AG, Merz Pharmaceuticals, LLC, Actavis plc, Prestium Pharma, Inc. and Arkin Holdings Ltd., and others. The company was founded in 2003 and is headquartered in Rehovot, Israel.

Civitas Solutions provides home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities, and other special needs. The company was founded in 1980 and is based in Boston, Massachusetts. Civitas Solutions, Inc. is a subsidiary of NMH Investment, LLC.

Tokai Pharmaceuticals is developing therapies for the treatment of prostate cancer and other hormonally-driven diseases. Its lead drug candidate is a oral small molecule drug in Phase II clinical trials for the treatment of castration resistant prostate cancer. The company was founded in 2004 and is headquartered in Cambridge, Massachusetts.

Affimed Therapeutics is discovering and developing cancer immunotherapies. The company was founded in 2000 and is headquartered in Heidelberg, Germany.

ReWalk Robotics provides exoskeletons for wheelchair-bound individuals. The company offers ReWalk Personal for everyday use to individuals at home and in their communities; and ReWalk Rehabilitation for exercise and therapy to individuals with lower limb disabilities in the clinical rehabilitation environment. ReWalk Robotics Ltd. was founded in 2001 and is headquartered in Yokneam Ilit, Israel.

C1 Financial operates C1 Bank that provides various banking services to individuals. C1 operates 28 banking centers and one loan production office located in Florida. The company was founded in 2013 and is based in St. Petersburg, Florida.

Otonomy develops treatment of ear diseases and disorders. Its lead product candidate is in Phase III clinical trials to treat pediatric patients with middle ear effusion. Otonomy was founded in 2008 and is headquartered in San Diego, California.

Ryerson processes and distributes metals including stainless steel, aluminum, carbon steel, and alloy steels, as well as a line of nickel and red metals in various shapes, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural components, and tubing. Ryerson is headquartered in Chicago, Illinois.

Independence Contract Drilling does land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays. It operates a fleet of ShaleDriller rigs for the development of oil and gas properties in the Permian Basin. The company was founded in 2011 and is based in Houston, Texas.

Green Bancorp operates Green Bank, which offers deposit accounts and commercial loans. Green Bank provides its services through 12 full service branches in the Houston, Dallas, and Austin metropolitan areas of Texas. The company was incorporated in 2004 and is headquartered in Houston, Texas.

T2 Biosystems is a diagnostics company with a magnetic resonance platform enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, and urine. T2 Biosystems was founded in 2006 and is headquartered in Lexington, Massachusetts.

iDreamSky Technology is a mobile gaming company in China. As of March 31, 2014, the company operated 18 casual games and 20 mid- and hardcore games. iDreamSky Technology Limited was founded in 2009 and is based in Shenzhen, China.

Höegh LNG Partners owns floating storage and regasification units, liquefied natural gas (LNG) carriers, and other LNG infrastructure assets under long-term charters.

Auris Medical develops products for the treatment of inner ear disorders. Its lead product candidate is in Phase III clinical trials for treating acute inner ear tinnitus. Auris Medical Holding AG was founded in 1998 and is headquartered in Zug, Switzerland.

Mobileye makes software and related technologies for camera-based advanced driver assistance systems for both the Original Equipment Manufacturing (OEM) and After Market. The company offers proprietary software algorithms and EyeQ chips that perform detailed interpretations of the visual field to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris, and other obstacles; and detect roadway markings, such as lanes, road boundaries, barriers, and related items, as well as identify and read traffic signs and traffic lights. Mobileye N.V. was founded in 1999 and is based in Jerusalem, Israel.

FCB Financial Holdings operates Florida Community Bank, a regional bank operating 54 branches. The company was founded in 1923 and is headquartered in Weston, Florida.

Loxo Oncology develops targeted small molecule therapeutics for the treatment of cancer in genetically defined patient populations. Its lead product candidate is in a Phase I dose escalation trial for the treatment of patients with advanced solid tumor types, such as neuroblastoma and lung, thyroid, and breast cancers. The company was founded in 2013 and is headquartered in Stamford, Connecticut.

Marinus Pharmaceuticals is developing neuropsychiatric therapeutics including Ganaxolone, a synthetic small molecule, which has completed Phase II clinical trial for the treatment of patients with refractory focal onset seizures. Marinus was founded in 2003 and is headquartered in New Haven, Connecticut.

VTTI Energy Partners runs petroleum product and crude oil terminals and related energy infrastructure assets. The company was founded in 2014 and is based in London, United Kingdom.

Synchrony Financial provides private label credit cards, dual cards, and small and medium-sized business credit products; promotional financing for consumer purchases, including installment loans; and promotional financing to consumers for elective healthcare procedures or services, such as dental, veterinary, cosmetic, vision, and audiology. Synchrony Financial was incorporated in 2003 and is headquartered in Stamford, Connecticut. Synchrony Financial operates as a subsidiary of GE Consumer Finance, Inc.

HealthEquity offers management services for health care accounts to health plans, insurance companies, and third-party administrators. HealthEquity was founded in 2002 and is headquartered in Draper, Utah.

Vascular Biogenics is engaged in the discovery, development, and commercialization of treatments for cancer and immune-inflammatory diseases. Its lead product is in Phase II clinical trials for the treatment of recurrent glioblastoma, an aggressive form of brain cancer. Vascular Biogenics was founded in 2000 and is based in Or Yehuda, Israel.

Macrocure is developing, manufacturing, and commercializing novel cell therapy products for the treatment of chronic and hard-to-heal wounds, and other regenerative medicine applications. The company’s lead cell-based biological product includes CureXcell, which is in two pivotal Phase III clinical trials for the treatment of hard-to-heal diabetic foot ulcers and hard-to-heal venous leg ulcers. Macrocure was founded in 2008 and is based in Petach Tikva, Israel.

Catalent is developing advanced delivery technologies and development solutions for drugs, biologics, and consumer health products. Catalent was founded in 2007 and is headquartered in Somerset, New Jersey.

Avalanche Biotechnologies discovers and develops novel gene therapies for the treatment of ophthalmic diseases. Its lead product candidate is in a Phase I/IIa trial for the treatment of wet age-related macular degeneration (AMD). The company was founded in 2006 and is headquartered in Menlo Park, California.

Bio Blast Pharma develops therapies for patients with rare and ultra-rare genetic diseases. Bio Blast Pharma was founded in 2012 and is headquartered in Tel Aviv, Israel.

Transocean Partners provides offshore drilling rigs consisting of two ultra-deepwater drillships and one ultra-deepwater semisubmersible rig. The company was founded in 2014 and is based in Aberdeen, United Kingdom.

Westlake Chemical Partners makes ethylene and ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The company was founded in 2014 and is based in Houston, Texas.

Spark Energy is involved in the retail distribution of natural gas and electricity to residential, commercial, and industrial customers. As of March 31, 2014, it operated in 46 utility service territories across 16 states, and had approximately 222,500 residential customers and 18,500 commercial customers. Spark Energy was founded in 1999 and is headquartered in Houston, Texas.

ContraFect Corporation develops protein and antibody products for life-threatening, drug-resistant infectious diseases, and particularly those used in hospital-based settings. The company was founded in 2008 and is headquartered in Yonkers, New York.

El Pollo Loco operates quick-service restaurants under the El Pollo Loco name in California, Arizona, Nevada, Texas, and Utah. The company’s restaurants specialize in flame-grilled chicken in various Mexican-influenced entrees. As of March 26, 2014, it operated 401 restaurants, which includes 168 company-operated and 233 franchised restaurants. El Pollo Loco Holdings was founded in 1980 and is headquartered in Costa Mesa, California.

Advanced Drainage Systems makes thermoplastic corrugated pipes and related water management products for non-residential, residential, agriculture, and infrastructure applications. The company was founded in 1966 and is headquartered in Hilliard, Ohio.

Ocular Therapeutix develops ophthalmic therapeutic products using its proprietary hydrogel technology for treating eye diseases and conditions. Ocular Therapeutix was founded in 2006 and is headquartered in Bedford, Massachusetts.

Innocoll makes collagen-based products for post-surgical applications. Innocoll AG was incorporated in 1997 and is headquartered in Athlone, Ireland.

Orion Engineered Carbons makes carbon black products for coatings and printing applications, as well as various conductive carbon black grades for use in polymer, printing, and battery electrodes applications. Orion Engineered Carbons S.A. was incorporated in 2011 and is based in Luxembourg.

Townsquare Media owns and operates radio, digital, and live event properties. It engages in creating and distributing original entertainment, music, and lifestyle content. Townsquare Media was founded in 1996 and is based in Greenwich.

Immune Design develops immune-based therapies based on its DCVex and GLAAS discovery platforms for cancer and other chronic conditions. The company was founded in 2008 and is headquartered in Seattle, Washington.

Intersect ENT provides therapeutic solutions for patients with ear, nose, and throat conditions. Intersect ENT was founded in 2003 and is headquartered in Menlo Park, California.

Pfenex develops biosimilar therapeutics for a broad range of indications. Pfenex is based in San Diego, California.

Transcription Billing provides a suite of Web-based solutions and business services including PracticePro, a Web-based software-as-a-service platform for practice and day-to-day operation of a medical practice; electronic health record (EHR) solutions that facilitate customers to reduce paperwork and qualify for government incentives; and revenue cycle management services, such as end-to-end medical billing, analytics, and related services. The company was founded in 1999 and is headquartered in Somerset, New Jersey.

TerraForm Power owns and operates solar generation assets with total nameplate capacity of 523.8 megawatts. The company was founded in 2014 and is based in Beltsville, Maryland. TerraForm Power, Inc. operates as a subsidiary of SunEdison, Inc.

Sage Therapeutics develops and commercializes medicines to treat rare central nervous system disorders. The company’s lead product candidate is in Phase I/II clinical development as an adjunctive therapy for the treatment of super-refractory status epilepticus (SRSE). Sage Therapeutics was founded in 2010 and is based in Cambridge, Massachusetts.

Trupanion provides medical insurance plans for cats and dogs. Trupanion was founded in 2000 and is headquartered in Seattle, Washington.

TubeMogul offers a cloud-based platform for advertisers to plan, buy, measure, and optimize video advertising spendind. TubeMogul was founded in 2007 and is headquartered in Emeryville, California.

Globant offers content management systems that are designed to allow rich content editing and immediate publishing of up-to-date product data and other information; and e-commerce applications to generate traffic and new sales, and incorporate product catalogs, payment and checkout functions, micro-transactions, search engine marketing, search engine optimization, and reporting, as well as designs and builds portals. The company, formerly known as IT Outsourcing S.L., was founded in 2003 and is based in Luxembourg.

Roka Bioscience focuses on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens. It provides an automated molecular diagnostic testing instrument to reduce labor costs and operator error in high-volume foodborne pathogen testing laboratories. It serves contract testing labs, food processors, and government agencies. The company was founded in 2009 and is headquartered in Warren, New Jersey.

CareDx makes a diagnostic surveillance solution for heart transplant recipients to help clinicians make personalized treatment decisions throughout a transplant patient’s lifetime. The company also offers AlloMap Molecular Expression Testing, an in vitro diagnostic multivariate index assay test service performed in a single laboratory assessing the gene expression profile of RNA isolated from peripheral blood mononuclear cells. The company was incorporated in 1998 and is based in Brisbane, California.

iRadimed makes magnetic resonance imaging (MRI) compatible products including non-magnetic intravenous (IV) infusion pump systems, IV tubing sets, IV poles, wireless remote displays/controls, monitoring products; and MRI Pulse oximeters, and MRI oximeter remotes and displays used during MRI procedures. iRadimed Corporation was incorporated in 1992 and is headquartered in Winter Park, Florida.

GlobeImmune develops and manufactures Tarmogens, a molecular immunotherapy vaccine for the treatment of cancer and infectious diseases. The company was founded in 1995 and is based in Louisville, Colorado.