What Makes Tradeweb Markets (TW) a Cyclical Company?

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Tradeweb Markets Inc. (NASDAQ:TW). Tradeweb Markets Inc. (NASDAQ:TW) is a global financial technology company that builds and operates electronic marketplaces. The one-month return of Tradeweb Markets Inc. (NASDAQ:TW) was -1.03%, and its shares lost 16.44% of their value over the last 52 weeks. On October 27, 2025, Tradeweb Markets Inc. (NASDAQ:TW) stock closed at $109.84 per share, with a market capitalization of $23.994 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Tradeweb Markets Inc. (NASDAQ:TW) in its third quarter 2025 investor letter:

“Tradeweb Markets Inc. (NASDAQ:TW) declined on potential signs that organic growth is decelerating amid stagnating market share gains, making the company more cyclical and susceptible to swings in industry trading volumes. However, we see its ongoing growth in clients and strong momentum in its international business as signs that growth metrics remain favorable.”

Tradeweb Markets Inc. (NASDAQ:TW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Tradeweb Markets Inc. (NASDAQ:TW) at the end of the second quarter, which was 35 in the previous quarter. In the second quarter of 2025, Tradeweb Markets Inc. (NASDAQ:TW) reported record revenues of $513 million that were up 26.7% year-on-year on a reported basis and 24.7% on a constant currency basis.  While we acknowledge the risk and potential of Tradeweb Markets Inc. (NASDAQ:TW) 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 Tradeweb Markets Inc. (NASDAQ:TW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Tradeweb Markets Inc. (NASDAQ:TW) and shared ClearBridge Mid Cap Growth Strategy’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.