5 Worst Performing Stocks in S&P 500

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1. MarketAxess Holdings Inc. (NASDAQ:MKTX)

YTD Performance as of February 23: -26.61%

Number of Hedge Fund Holders: 27

New York-based MarketAxess Holdings Inc. (NASDAQ:MKTX) operates a leading institutional electronic trading platform focused on global fixed-income markets. Its network comprises over 2,000 firms, including the world’s leading asset managers and institutional broker-dealers.

According to the Insider Monkey data on 933 leading hedge funds, 27 hedge funds were long MarketAxess Holdings Inc. (NASDAQ:MKTX) shares as of Q4 2023, with the total shares held by hedge funds valued at $931 million.

In its Q4 2023 investor letter, Polen Capital, an investment management company, made the following comments about MarketAxess Holdings Inc. (NASDAQ:MKTX):

“MarketAxess operates one of the leading electronic trading platforms for fixed income securities, with over 2,000 institutional investors and broker-dealers using their trading solutions. In our opinion, the company only has 2-3 legitimate global e-trading competitors in a high barrier-to-entry market. Over the past five years, the share price has been roughly flat as the previously elevated multiple compressed due to the rollout of new competitive protocols that cut into their monopoly position in U.S. credit as well as due to a shift in macro conditions (i.e., rising rates impact on fixed income). We believe the shares now trade at a far more reasonable multiple, and the company has invested heavily in new technology, product categories, and geographies to level with their capable competitors. As the company begins to lap these near-term difficult macro conditions, we believe EPS can potentially compound at a mid-teens rate (or higher) as this outstanding, highly cash-generative business returns to form.”

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