East 72, an investment management company, recently released its third quarter 2023 investor letter. A copy of the same can be downloaded here. Global equity indexes were broadly lower during the third quarter. US markets fell in the 3% range over the same period after a 5% decline in September. The fund delivered a -2.23% return in the third quarter ended September 30, 2023. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
East 72 highlighted stocks like Virtu Financial, Inc. (NASDAQ:VIRT) in the third quarter 2023 investor letter. Headquartered in New York, New York, Virtu Financial, Inc. (NASDAQ:VIRT) is a financial services company. On October 16, 2023, Virtu Financial, Inc. (NASDAQ:VIRT) stock closed at $18.55 per share. One-month return of Virtu Financial, Inc. (NASDAQ:VIRT) was 6.61%, and its shares lost 14.59% of their value over the last 52 weeks. Virtu Financial, Inc. (NASDAQ:VIRT) has a market capitalization of $3.023 billion.
East 72 made the following comment about Virtu Financial, Inc. (NASDAQ:VIRT) in its Q3 2023 investor letter:
“This month, we detail one of only two listed companies (the other is Flow Traders) whose main business is to operate as a liquidity supplier in financial markets: Virtu Financial, Inc. (NASDAQ:VIRT). Virtu reputedly sees over 9% of US equity volumes per day pass across its desks (well, through its machines) – but is utterly unloved at present. The loathing is partly to do with recent volatile business performance, partly with flawed execution of their capital management strategy, a response to fundamental competitive trends in (stock) exchanges, but most recently with the aggressive stance taken towards the Chair of US SEC, the key regulator, Gary Gensler, and his attempts to “protect” retail investors. The whole industry is happy to embrace certain reforms – but not others. Moreover, Virtu has – to a degree – led with its head, seemingly eliciting a particularly aggressive response. Investors don’t like uncertainty, especially regulatory uncertainty. Herein lies the opportunity, perhaps.
In one guise or other, in January 2024, assuming Dynasty Trust is still holding, I will be into my SEVENTH year of having exposure to Virtu Financial Inc (VIRT), though not necessarily continuously. Given what Virtu does, even allowing for cycles in its earnings, that’s a long time.
Virtu Financial, with an equity market capitalisation at end September 2023 of just overUS$2.8billion1 and with $1.8billion of long-term debt due in 2029, is the sole listed US based “liquidity provider”. Liquidity providers, or market makers, are a controversial industry of financial market “plumbers” who are receiving extra unwanted and tainted publicity with the release of the movie “Dumb Money”2 regarding the meme stock explosion of securities like Game Stop and AMC Entertainment in early 2021. The March quarter of that year was Virtu’s second most profitable ever, measured by “daily profit”. The short term “sugar-hit” has provided a longer-term hangover – an SEC enquiry and proposed tighter regulation…” (Click here to read the full text)
A finance professional at their computer logging into the company’s branded digital banking platform. Editorial photo for a financial news article. 8k. –ar 16:9
Virtu Financial, Inc. (NASDAQ:VIRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Virtu Financial, Inc. (NASDAQ:VIRT) at the end of second quarter which was 23 in the previous quarter.
We discussed Virtu Financial, Inc. (NASDAQ:VIRT) in another article and shared the list of mid-cap stocks that insiders have been buying lately. In addition, please check out our hedge fund investor letters Q3 2023 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.
