But things have recently turned around, Renaissance Capital co-founder Kathleen Smith told CNBC's"There's definitely been an improvement," Smith said. "The aftermarket returns are positive now for the last three months. I think it's about 12%, which is very good. ... If you drag along the full year, they're just about breakeven now."
Her firm's flagship ETF, IPO, has reflected that improvement. The ETF is up nearly 10.5% in the past three months versus nearly 7% for the S&P 500, with investors returning to growth investments as rates decline. "We're in a market where investors just want growth. They're ignoring anything that's not growth," Smith said. "So investors are willing to pay a lot of money for growth, but ... the real return is negative on any kind of fixed-income product. So in terms of yield, you really value a company that can produce growth and cash flow. Interestingly enough, unlike 2000, the cash flow's very good on most of these companies.
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