Horizon Kinetics, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. In its third-quarter letter, the fund delved into its financial market forecasts, emphasized the significance of securities exchanges as a vital asset class, explored blockchain technology, and acknowledged the formidable challenge of achieving consistent success in emerging technologies. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Horizon Kinetics mentioned CME Group Inc. (NASDAQ:CME) and explained its insights for the company. CME Group Inc. (NASDAQ:CME) is a Chicago, Illinois-based financial services company with a $76.8 billion market capitalization. CME Group Inc. (NASDAQ:CME) delivered a 26.91% return since the beginning of the year, while its 12-month returns are up by 20.92%. The stock closed at $213.42 per share on November 17, 2023.
Here is what Horizon Kinetics has to say about CME Group Inc. (NASDAQ:CME) in its Q3 2023 investor letter:
“Exchanges are entirely different. First, they each tend to be monopolistic in their particular product specialty or portfolio of specialties, because the particulars of a given contract—like size, expiration date or term structure—strike the right chord with traders and accrues more volume than an initially competing product. That initial success draws the greatest volume and depth, which then attracts even more traders. Eventually that becomes the dominant or exclusive contract. But there isn’t, thereafter, direct or self-limiting competition. For instance, no one trades crude oil. They trade West Texas Intermediate on the New York Mercantile Exchange, which is owned by CME Group. Or they trade Brent Crude through the Intercontinental Exchange. They have different features. The mercantile exchange giant, CME Group, continues to build its crypto derivatives business, with a Bitcoin/Ether ratio spread contract set to go live at the end of July 2023.”
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Our calculations show that CME Group Inc. (NASDAQ:CME) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. We also mentioned CME Group Inc. (NASDAQ:CME) in another article. CME Group Inc. (NASDAQ:CME) was in 55 hedge fund portfolios at the end of the second quarter of 2023, compared to 55 funds in the previous quarter. CME Group Inc. (NASDAQ:CME) delivered a 5.34% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.