Reasons to Hold CME Group (CME) Despite a 13% Fall In Share Price in the Third Quarter

Baron Funds, an investment management company, released its “Baron Durable Advantage Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 5.0% (Institutional Shares) compared to a 4.9% decline for the S&P 500 Index. Holdings in Health Care, Industrials, and Consumer Staples contributed to the fund’s relative performance in the quarter, whereas holdings in Financials, Consumer Discretionary, and Information Technology detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like CME Group Inc. (NASDAQ:CME) in the third quarter investor letter. Headquartered in Chicago, Illinois, CME Group Inc. (NASDAQ:CME) is a global contract market for the trading of futures and options. On November 15, 2022, CME Group Inc. (NASDAQ:CME) stock closed at $173.79 per share. One-month return of CME Group Inc. (NASDAQ:CME) was 0.57%, and its shares lost 23.24% of their value over the last 52 weeks. CME Group Inc. (NASDAQ:CME) has a market capitalization of $62.517 billion.

Baron Funds made the following comment about CME Group Inc. (NASDAQ:CME) in its Q3 2022 investor letter:

CME Group Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares fell 13% during the quarter (despite reporting strong average daily trading volume growth of 26% year-over year) due to concerns that EPS growth will slow in 2023 as the rate hike cycle comes to an end. We continue to own the stock due to CME’s strong competitive moats, its product breadth and liquidity depth, its durable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures, and tailwinds from the rising rate environment.”

CME Group Inc. (NASDAQ:CME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held CME Group Inc. (NASDAQ:CME) at the end of the second quarter which was 58 in the previous quarter.

We discussed CME Group Inc. (NASDAQ:CME) in another article and shared the list of stocks Ray Dalio and insiders are piling up. In addition, please check out our hedge fund investor letters Q3 2022 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.