Here’s Why Upslope Capital Exited its MarketAxess (MKTX) Position

Upslope Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -0.3% was recorded by the fund for the first quarter of 2022, compared to the S&P Midcap 400 ETF and the HFRX Equity Hedge Index that delivered -5.0% and -0.3% gains for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Upslope Capital mentioned MarketAxess Holdings Inc. (NASDAQ:MKTX) and explained its insights for the company. Founded in 2000, MarketAxess Holdings Inc. (NASDAQ:MKTX)  is a United States-based international financial technology company with a $10.1 billion market capitalization. MarketAxess Holdings Inc. (NASDAQ:MKTX)  delivered a -34.85% return since the beginning of the year, while its 12-month returns are down by -46.96%. The stock closed at $267.95 per share on April 25, 2022.

Here is what Upslope Capital has to say about MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q1 2022 investor letter:

“After what appeared to be bottoming fundamentals for MKTX, the two most recent months of trading volume and market share data have been increasingly disappointing. Given a not-obviously-cheap valuation (inconsistent with a takeout bid – for now) and management commentary seemingly in denial about obvious problems, I sold the small remainder of our shares post-Q1. The back-and-forth has been frustrating but warranted. I know MKTX better than just about any company Upslope has been involved with, so at least the distraction has been mild. This is likely not the last time Upslope will be involved with the stock.”

10 best cheap stocks to invest in February 2021

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Our calculations show that MarketAxess Holdings Inc. (NASDAQ:MKTX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MarketAxess Holdings Inc. (NASDAQ:MKTX) was in 32 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 29 funds in the previous quarter. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a -26.63% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on MarketAxess Holdings Inc. (NASDAQ:MKTX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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