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Filing for IPOs is becoming almost a daily activity for any company wishing to go public. If one knows how to generate an App, one would file an IPO.

MacArthur used to sell short failed IPOs and smaller capitalization companies with a weak balance sheet.  Sometimes, companies come public with a lot of hype causing the stock to rise, only to later lose its popularity.  Once it breaks the IPO price, those stocks can quick and sometimes permanently lose value.  We also track small companies, often having less than one billion of market capitalization that are having fundamental problems.  We are big proponents of balance sheet deterioration. If possible we’ll aim for a move to zero, especially if a corrupt management buys back stock with debt, for example.  Shorting low-priced, low market capitalization is quite profitable because we are no longer fighting management and the Street. Those stocks may quietly grind down $.20 per day, forever.  This strategy is hard to apply for funds managing $1 billion or more; however a smaller fund could take advantage of these and other sub $1 billion market capitalization companies.