Here’s Why Intercontinental Exchange (ICE) Surged in Q1

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -8.74 % in the first quarter, compared to the Russell 1000 Growth Index’s 4.28% return.  Stock selection in the consumer discretionary and financial sectors contributed to the relative performance of the fund in the quarter, while selection in information technology and healthcare detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Janus Henderson Forty 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 1.33%, and its shares gained 31.64% of their value over the last 52 weeks. On June 12, 2025, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $179.08 per share, with a market capitalization of $102.725 billion.

Janus Henderson Forty Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its Q1 2025 investor letter:

Intercontinental Exchange, Inc. (NYSE:ICE), a multinational financial services company that operates global financial exchanges and clearing houses, was also a top contributor to relative performance. The company demonstrated business durability during increased market volatility. Its energy exchange business thrived amid natural gas globalization, while its European rates business benefited from interest rate volatility. Its recurring fixed income data business performed well, and despite higher mortgage rates creating headwinds, ICE is establishing itself as the infrastructure provider for the mortgage market with major banks adopting its platform.”

Rows of stock tickers illuminated with the latest trading information in a stock exchange, symbolizing the investment fund.

Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the first quarter, which was 91 in the previous quarter. In Q1 2025, Intercontinental Exchange, Inc. (NYSE:ICE) reported an 8% increase in net revenue. While we acknowledge the potential of Intercontinental Exchange, Inc. (NYSE:ICE) 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 undervalued AI stock set for massive gains.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared Meridian Hedged Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ICE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.