Yahoo Finance MarketAxess Holdings (MKTX) Fell on Market Share Loss Worries
Wasatch Global Investors, an asset management company, released its “Wasatch U.S. Select Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy gained but underperformed the Russell 3000 Growth Index benchmark, which was up 11.23%. Holdings in information technology (IT) and financials sectors detracted from the relative performance of the strategy, on the other hand, holdings in healthcare and consumer-discretionary sectors outperformed and contributed to the performance of the strategy in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch U.S. Select Strategy highlighted stocks like MarketAxess Holdings Inc. (NASDAQ:MKTX), in the first quarter 2024 investor letter. MarketAxess Holdings Inc. (NASDAQ:MKTX) is an electronic trading platform for institutional investors and broker-dealer companies. The one-month return of MarketAxess Holdings Inc. (NASDAQ:MKTX) was -7.58%, and its shares lost 28.07% of their value over the last 52 weeks. On June 17, 2024, MarketAxess Holdings Inc. (NASDAQ:MKTX) stock closed at $199.36 per share with a market capitalization of $7.555 billion.
Wasatch U.S. Select Strategy stated the following regarding MarketAxess Holdings Inc. (NASDAQ:MKTX) in its first quarter 2024 investor letter:
"The greatest detractor from strategy performance during the first quarter was MarketAxess Holdings Inc. (NASDAQ:MKTX), which offers an electronic trading platform that we believe is pivotal for delivering efficiency, liquidity and cost savings to clients operating in global fixed-income markets. After a strong finish in 2023, the stock declined at the beginning of this year due to some concerns about potential market-share losses. Nevertheless, our investment thesis remains on track. We believe MarketAxess has been finetuning its services to accommodate clients of various sizes. And we don’t think the recent competitive challenges will materially impact the company’s ability to grow its global fixed-income trading business over the long term. We’re especially excited about the revenue potential of some new services that help clients optimize operations and data flow. During the first quarter, we took advantage of the stock-price weakness to buy more shares."
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MarketAxess Holdings Inc. (NASDAQ:MKTX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held MarketAxess Holdings Inc. (NASDAQ:MKTX) at the end of the first quarter which was 27 in the previous quarter. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered revenue of $210 million in the first quarter, up 4% from the prior year. While we acknowledge the potential of MarketAxess Holdings Inc. (NASDAQ:MKTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed MarketAxess Holdings Inc. (NASDAQ:MKTX) and shared Carillon Eagle Mid Cap Growth Fund's views on the company. MarketAxess Holdings Inc. (NASDAQ:MKTX) was one of the top detractors of Artisan Small Cap Fund in Q1 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
