Baron Funds, an investment management firm, released its “Baron FinTech Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. During the quarter concluding on September 30, 2023, Baron FinTech Fund® (Institutional Shares) experienced a 1.30% increase, contrasting with a 6.77% loss for the FactSet Global FinTech Index (the Benchmark). Since its inception on December 31, 2019, the Fund has achieved an annualized growth of 6.50%, surpassing the Benchmark, which declined by 2.22%. 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, Baron FinTech Fund mentioned MarketAxess Holdings Inc. (NASDAQ:MKTX) and explained its insights for the company. MarketAxess Holdings Inc. (NASDAQ:MKTX) is a United States-based international financial technology company with a $8.6 billion market capitalization. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a -20.06% return since the beginning of the year, while its 12-month returns are down by -16.37%. The stock closed at $228.18 per share on November 17, 2023.
Here is what Baron FinTech Fund has to say about MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q3 2023 investor letter:
“We also sold MarketAxess Holdings Inc. due to concerns about increasing competitive intensity and slowing growth. We had owned MarketAxess because it was the dominant electronic platform for trading corporate bonds and had enjoyed many years of double-digit growth from the secular growth of electronic trading. However, earnings and market share in the company’s core product area (U.S. high-grade corporate bonds) peaked in 2020 and have stagnated for the last three years. Meanwhile, competitor Tradeweb has been gaining share through innovation and cross-selling.”
A specialist making adjustments to a complex stock market index, displaying the robust performance of the company’s investment portfolio.
Our calculations show that MarketAxess Holdings Inc. (NASDAQ:MKTX) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. MarketAxess Holdings Inc. (NASDAQ:MKTX) was in 28 hedge fund portfolios at the end of the second quarter of 2023, compared to 29 funds in the previous quarter. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a -5.93% 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.
Disclosure: None. This article is originally published at Insider Monkey.