Here’s Why You Should Consider Disposing Your Cboe Global Markets (CBOE) Shares

Upslope Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of +3.4% was recorded by the fund for the fourth quarter of 2021, compared to the S&P Midcap 400 ETF and the HFRX Equity Hedge Index that delivered +8.0% and +2.7% gains for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Upslope Capital Management, in its Q4 2021 investor letter, mentioned Cboe Global Markets, Inc. (NASDAQ: CBOE) and discussed its stance on the firm. Cboe Global Markets, Inc. is a Chicago, Illinois-based exchange holding company with a $12.7 billion market capitalization. CBOE delivered a -8.01% return since the beginning of the year, while its 12-month returns are up by 30.37%. The stock closed at $119.95per share on February 7, 2022.

Here is what Upslope Capital Management has to say about Cboe Global Markets, Inc. in its Q4 2021 investor letter:

“Cboe Global Markets (CBOE) – Exited Long

CBOE is a diversified, global exchange (equity, derivative, FX) operator with dominant positions in index and volatility (VIX) derivatives. After 3.5 years, we effectively exited the position in early 2022. Ultimately, the two key pillars of the investment thesis – improving fundamentals and a potential take-out – broke by year-end. While I believe we came very close to seeing CBOE get acquired, it appears to be off the table for the foreseeable future (an uptick in insider selling and a very sharp acceleration in acquisition and strategic activity are notable). Additionally, while 2021 saw a nice improvement in fundamentals, the rebound in CBOE’s key VIX product appears to have stalled. On the options front, CBOE also appears to face notable risk should retail interest fade (this seems likely, given what’s happened to many retail-favorite stocks in recent months).”

Our calculations show that Cboe Global Markets, Inc. (NASDAQ: CBOE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CBOE was in 35 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. Cboe Global Markets, Inc. (NASDAQ: CBOE) delivered a -10.33% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on CBOE in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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