Cambiar Fund Reopens ICE Position Amid Exchange Industry Concerns
The fund says ICE’s range of services may help offset worries about AI disruption and new derivatives competition.
Cambiar Opportunity Fund disclosed a new purchase of Intercontinental Exchange in the second quarter, saying it sees value in the company despite pressure on exchange shares. As of 16:33 UTC on Oct. 1, ICE traded at $151.39, down 0.42% from its previous close.
The fund said it knows ICE well because it held the stock before. It pointed to industry concerns over possible AI disruption and the potential for lower trading volumes after perpetual futures were approved in prediction markets.
Perpetual futures let traders speculate on an asset’s price without a set expiration date, the letter said. Cambiar described them as a potential competitive threat, but said ICE and CME offer a broad range of services that it believes are not reflected in their share prices.
The fund said trading and clearing services remain essential in both rising and falling markets, giving the companies greater revenue and earnings visibility, in its view.
This article was produced with the help of AI technology.
Source: Yahoo Finance
