How will CME Group (CME) Benefit from the Tariffs?

Appalaches Capital, an investment management firm, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Appalaches Core LO ended the quarter with a loss of 0.5% after all fees and expenses compared to the S&P 500’s decline of 4.3%, the equal-weighted S&P 500’s loss of 0.6%, and the SOFR Index return of 1.1% in the 1st quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Appalaches Capital highlighted stocks such as CME Group Inc. (NASDAQ:CME). Headquartered in Chicago, Illinois, CME Group Inc. (NASDAQ:CME) operates contract markets for the trading of futures and options on futures contracts. The one-month return of CME Group Inc. (NASDAQ:CME) was -0.88%, and its shares gained 40.81% of their value over the last 52 weeks. On June 3, 2025, CME Group Inc. (NASDAQ:CME) stock closed at $282.31 per share, with a market capitalization of $101.733 billion.

Appalaches Capital stated the following regarding CME Group Inc. (NASDAQ:CME) in its Q1 2025 investor letter:

“We have generally seen positive developments in the rest of the portfolio, with AutoZone and CME Group Inc. (NASDAQ:CME) being tariff beneficiaries. CME Group has seen an increase in exchange volumes with more participants looking to hedge their risk in the current geopolitical landscape.”

Was Jim Cramer Right About CME Group Inc. (CME)?

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CME Group Inc. (NASDAQ:CME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held CME Group Inc. (NASDAQ:CME) at the end of the first quarter, which was 73 in the previous quarter. In the first quarter of 2025, CME Group Inc.’s (NASDAQ:CME) revenue crossed $1.6 billion, reflecting an increase of 10% from Q1 2024. While we acknowledge the potential of CME Group Inc. (NASDAQ:CME) 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 CME Group Inc. (NASDAQ:CME) and shared Jim Cramer’s successful stock predictions. In addition, please check out our hedge fund investor letters Q1 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.