Do You Believe in Intercontinental Exchange’s (ICE) Long-Term Growth Potential?

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the market is more focused on the tailwind of policy easing than the headwind of weakening fundamentals, resulting in substantial gains despite stagflation emerging as a key concern. In this environment, the fund returned 1.67% (net) during the quarter, compared to 8.13% returns of the S&P 500 Index and 3.53% returns of the secondary benchmark, the CBOE S&P 500 BuyWrite Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted stocks such as Intercontinental Exchange, Inc. (NYSE:ICE). Intercontinental Exchange, Inc. (NYSE:ICE) is a financial services company that offers market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities. The one-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was 3.84%, and its shares gained 7.64% of their value over the last 52 weeks. On December 23, 2025, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $161.95 per share, with a market capitalization of $92.704 billion.

Meridian Hedged Equity Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its third quarter 2025 investor letter:

“Intercontinental Exchange, Inc. (NYSE:ICE) operates a global network of exchanges, clearing houses, and data services spanning major asset classes, including energy, equities, fixed income, and U.S. residential mortgages. We like the company for its resilient business model. It combines transaction-based revenues that benefit from market volatility with a growing base of recurring data and technology revenues, each generating strong, consistent cash flow for debt reduction and shareholder returns. The stock underperformed during the quarter, however, we maintain confidence in the company’s long-term potential.”

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Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the third quarter, compared to 84 in the previous quarter. While we acknowledge the risk and potential of Intercontinental Exchange, Inc. (NYSE:ICE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Intercontinental Exchange, Inc. (NYSE:ICE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared Parnassus Core Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 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.