Weitz Investment: “MarketAxess (MKTX) Shows Promise of Rapid Growth in Business Value”

Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. In its letter, the fund mentioned that it knows very little in economics, politics, and investor psychology is predictable. The fund believes, though, that business value is (roughly) measurable and that it (eventually) exerts a gravitational pull on a company’s stock price. According to Weitz Investment, when confidence is shaken and markets are volatile, active managers have the raw material they need to add value for investors. We’re looking forward to an interesting year. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Weitz Investment Management, in its Q4 2021 investor letter, mentioned MarketAxess Holdings Inc. (NASDAQ: MKTX) and discussed its stance on the firm. MarketAxess Holdings Inc. is a New York, New York-based financial services company with a $13.0 billion market capitalization. MKTX delivered a -16.24% return since the beginning of the year, while its 12-month returns are down by -39.43%. The stock closed at $344.48 per share on January 31, 2022.

Here is what Weitz Investment Management, Inc. has to say about MarketAxess Holdings Inc. in its Q4 2021 investor letter:

“Several “platform” companies thrived during COVID and have been very strong stocks. In 2021, their businesses continued to thrive, though their stock prices cooled of A different kind of platform, MarketAxess, a bond trading exchange, is rapidly gaining share of global bond trading (our fixed income managers use it, and they swear by it). MarketAxess shows promise of rapid growth in business value. It was arguably ahead of itself earlier in 2021 at around $600, but as investor attention strayed to other areas and the stock drifted back under $400, we were able to invest in a company we have long admired.”

Research, Investment, Finance

Our calculations show that MarketAxess Holdings Inc. (NASDAQ: MKTX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MKTX was in 29 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. MarketAxess Holdings Inc. (NASDAQ: MKTX) delivered a -15.69% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on MKTX 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.