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Does MarketAxess Holdings (MKTX) Have a Long-Term Growth Trajectory?

Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned 5.21% in the quarter underperforming the 9.50% return for the Russell Midcap Growth Index. The strategy focuses on companies that offer mission-critical products and services that save time, lives, money, and headaches. In addition, check the fund’s top five holdings to know its best picks in 2024.

The Brown Capital Management Mid Company Fund highlighted stocks like MarketAxess Holdings Inc. (NASDAQ:MKTX), in the first quarter 2024 investor letter. MarketAxess Holdings Inc. (NASDAQ:MKTX) is an electronic trading platform for institutional investors and broker-dealer companies.  The one-month return of MarketAxess Holdings Inc. (NASDAQ:MKTX) was -5.96%, and its shares lost 25.18% of their value over the last 52 weeks. On June 25, 2024, MarketAxess Holdings Inc. (NASDAQ:MKTX) stock closed at $194.05 per share with a market capitalization of $7.354 billion.

The Brown Capital Management Mid Company Fund stated the following regarding MarketAxess Holdings Inc. (NASDAQ:MKTX) in its first quarter 2024 investor letter:

“MarketAxess Holdings Inc. (NASDAQ:MKTX) is a leading electronic-trading platform for fixed income securities. The company is one of the largest institutional electronic-trading venues for previously issued emerging-market, U.S. investment-grade, and U.S. high-yield debt, with leading market share in each category. Currently, the U.S. fixed income market is conducted mainly via over-the-phone transactions. Electronic trading represents less than one-third of trading volume in the fixed income categories that MarketAxess targets, which is well below the penetration rate of other asset classes such as futures and equities, where 70% to 90% of trades occur electronically. By facilitating electronic trading, the company’s innovative technology solutions offer customers greater efficiency, cost savings and improved trading liquidity, all essential to customer operations. In addition, MarketAxess has opportunities to expand its product line into new fixed income markets, such as municipal bonds and U.S. Treasurys.

During the first quarter, MarketAxess’s share price underperformed due primarily to recent market-share losses. Lower volatility combined with strong new issuances, which do not typically trade electronically, had an impact. In addition, portfolio trading—transacting a basket of different fixed income securities in a single trade rather than executing each bond separately—along with dealer-to-dealer transactions, showed robust performance. These areas have previously been identified as comparative weaknesses for the company. MarketAxess is addressing these shortcomings by introducing additional features and functionality, including the X-Pro trading platform that integrates real-time data, pre-trade analytics and trading protocols to enhance client productivity. While this current weakness will likely weigh on near-term results, we believe electronic bond trading will become the dominant form of trading over the longer term, providing many years of attractive and profitable growth.”

A trader in a busy trading room, surrounded by real-time market data and automated execution services.

MarketAxess Holdings Inc. (NASDAQ:MKTX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held MarketAxess Holdings Inc. (NASDAQ:MKTX) at the end of the first quarter which was 27 in the previous quarter. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered revenue of $210 million in the first quarter, up 4% from Q1 2023. While we acknowledge the potential of MarketAxess Holdings Inc. (NASDAQ:MKTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed MarketAxess Holdings Inc. (NASDAQ:MKTX) in another article and shared Wasatch U.S. Select Strategy’s views on the company. Carillon Eagle Mid-Cap Fund commented on MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q1 2024 investor letter stating that the shares lagged during the quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…