5 Best Stocks to Buy Now According to Billionaire David Harding

2. CME Group Inc. (NASDAQ:CME)

Winton Capital Management’s Stake Value: $16,418,000

Percentage of Winton Capital Management’s 13F Portfolio: 0.99%

Number of Hedge Fund Holders: 55

CME Group Inc. (NASDAQ:CME) is a financial derivatives exchange and capital markets company that operates worldwide. David Harding’s Winton Capital Management reported owning 71,862 shares of CME Group Inc. (NASDAQ:CME) in Q4 2021, worth $16.4 million, representing 0.99% of the total 13F portfolio. The hedge fund increased its position in the company by 28% in the December quarter. 

On April 5, UBS analyst Alex Kramm lowered the price target on CME Group Inc. (NASDAQ:CME) to $269 from $275 after its March metrics but kept a Buy rating on the shares. The analyst stated that trading activity in March slowed significantly, and he reduced his Q1 EPS view by $0.11 to $1.97. However, he remains constructive at current levels as the stock’s valuation is still relatively low.

Among the hedge funds tracked by Insider Monkey, 55 funds placed long bets on CME Group Inc. (NASDAQ:CME) in Q4 2021, compared to 64 funds in the prior quarter. The total stakes owned in the fourth quarter equaled $2.72 billion. GuardCap Asset Management held the largest position in the company, with more than 4 million shares worth $927.6 million. 

Here is what ClearBridge Investments Select Strategy has to say about CME Group Inc. (NASDAQ:CME) in its Q4 2021 investor letter:

“CME Group, for example, maintains a dominant franchise in electronic commodities and options trading with high incremental margins. Its interest rate trading business had been depressed coming out of the recession, but with a tightening policy environment, it now provides upside optionality that augments robust free cash flow growth and capital return. Willscot Mobile Mini is another compounder that executed well through the pandemic but was not initially recognized for the synergies of its Mobile Mini acquisition. The deal has reduced costs and created greater operating leverage as the company rides the tailwinds of improving industrial production and construction.”