US funds set aside cash as SpaceX and OpenAI prepare to go public, analysts say

Large mutual funds and passive index funds are starting to set aside more cash ​and preparing to offload some of their existing ​holdings in large-cap stocks, as they prepare to add upcoming blockbuster IPOs like SpaceX ​and OpenAI to their portfolios.

For passive funds, the potential inclusion of newly public companies could force them to sell down existing holdings in other large-cap stocks, said John Flood, managing director,Global Banking & Markets, FICC & Equities at Goldman Sachs, in a May 22 note to clients.