Should You Consider Adding MarketAxess Holdings (MKTX) to Your Portfolio?
Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, its Investor Class fund ARTSX returned 7.60%, Advisor Class fund APDSX posted a return of 7.63%, and Institutional Class fund APHSX returned 7.62%, compared to a return of 6.07% for the Russell 2000 Growth Index. Both allocation and security selection drove the portfolio to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Small Cap Fund highlighted stocks like MarketAxess Holdings Inc. (NASDAQ:MKTX) in the first quarter 2023 investor letter. Headquartered in New York, New York, MarketAxess Holdings Inc. (NASDAQ:MKTX) is an electronic trading platform provider. On May 18, 2023, MarketAxess Holdings Inc. (NASDAQ:MKTX) stock closed at $288.03 per share. One-month return of MarketAxess Holdings Inc. (NASDAQ:MKTX) was -11.92%, and its shares gained 3.12% of their value over the last 52 weeks. MarketAxess Holdings Inc. (NASDAQ:MKTX) has a market capitalization of $10.85 billion.
Artisan Small Cap Fund made the following comment about MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q1 2023 investor letter:
“As the leading US electronic credit trading network, we believe that MarketAxess Holdings Inc. (NASDAQ:MKTX) is in a pole position to capture greater market share of trading volumes as global credit markets increasingly shift toward electronic trading venues. This transition is still in its early stages (US investment grade ~35%, US high yield ~25%, emerging markets ~25% and Eurobonds ~45%), and emerging opportunities such as municipal and Treasury bonds are even lower. We have witnessed a step-up in quarterly market share gains from continued adoption of “all to all” trading protocols, new automation products and contribution from new markets (munis and Treasurys). The increase in market share coincides with the potential for its multi-year long investment spending cycle to be nearing an end. In addition, volume and pricing headwinds associated with the fast and high level of interest rate increases have the potential to reverse and provide a tailwind to the profit cycle. First-quarter earnings results were thesis-affirming as they demonstrated market share gains and rising industry volumes, leading to the company’s first positive earnings estimate revision in two years. As a result, we added to the position.”
MarketAxess Holdings Inc. (NASDAQ:MKTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held MarketAxess Holdings Inc. (NASDAQ:MKTX) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed MarketAxess Holdings Inc. (NASDAQ:MKTX) in another article and shared Carillon Eagle Mid Cap Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.
