Magellan Global Fund’s Thoughts on CME Group (CME)

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global Fund highlighted stocks such as CME Group Inc. (NASDAQ:CME). CME Group Inc. (NASDAQ:CME) operates the leading financial exchange for the trading of futures and options on futures contracts. The one-month return for CME Group Inc. (NASDAQ:CME) was -2.54%, and its shares gained 15.34% over the last 52 weeks. On December 15, 2025, CME Group Inc. (NASDAQ:CME) stock closed at $272.18 per share, with a market capitalization of $98.148 billion.

Magellan Global Fund stated the following regarding CME Group Inc. (NASDAQ:CME) in its third quarter 2025 investor letter:

“CME Group Inc. (NASDAQ:CME) is the world’s leading derivatives marketplace and serves as a core defensive holding within the Magellan Global Fund. CME operates a diversified exchange business across major asset classes – including interest rates, equities, foreign exchange and commodities – providing a natural hedge during periods of market volatility.

Not all exchange businesses are created equal. Derivative exchanges are amongst the highest quality, operating as a near monopoly in key contracts and proprietary benchmarks given the significant network effects generated from liquidity, clearing and benchmark status. This near-monopoly creates capital efficiencies and substantial barriers to entry for potential competitors…” (Click here to read the full text)

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

CME Group Inc. (NASDAQ:CME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held CME Group Inc. (NASDAQ:CME) at the end of the third quarter, which was 75 in the previous quarter. CME Group Inc. (NASDAQ:CME) reported revenue of $1.5 billion in Q3 2025, down 3% from the very strong third quarter in 2024. While we acknowledge the risk and potential of CME Group Inc. (NASDAQ:CME) 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 CME Group Inc. (NASDAQ:CME) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered CME Group Inc. (NASDAQ:CME) and shared Cooper Investors Global Equities 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.