NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy g ...

Group 1: Robinhood Markets - Robinhood experienced significant growth in the past year, with third-quarter revenue approximately doubling year over year to about $1.27 billion and net income increasing by over 270% [2] - The company expanded its offerings, including popular event contracts and tokenization, contributing to strong customer engagement and a growing asset base [3] - Despite the growth, Robinhood's stock has become expensive, trading at 42.8 times forward earnings [3] Group 2: Tradeweb Markets - Tradeweb operates a professional trading platform that has achieved substantial growth and market share, finishing 2024 as the leading platform for U.S. electronic high-grade credit markets and holding a 22% share of U.S. Treasury trading volume [4] - Tradeweb faced challenges last year, with its stock declining 31% from its April peak due to high market volatility and decreased activity stemming from a government shutdown [5] - The company anticipates further growth opportunities as geopolitical tensions remain high, expecting normalized volatility and constructive conditions heading into 2026, supported by December trading volume hitting $63 trillion and a 27.5% year-over-year increase in average daily volume [6]

Core Insights - Tradeweb Markets has successfully transitioned to electronic trading, positioning itself as a leader in the industry and continuously innovating to enhance trading efficiency for clients [2][3] Company Strategy - Tradeweb has adopted a methodical approach to market expansion, starting with U.S. Treasury bond trading in 1999, which generated over $25 million in revenue within four years, followed by successful entries into mortgage-backed securities and European sovereign bonds [4] - The company has diversified its product offerings, including derivatives, global exchange-traded funds, and emerging market derivatives, which have contributed significantly to its financial success [4][5] Growth Opportunities - Tradeweb is poised for future growth due to several favorable trends, including increasing government debt, corporate capital raising at low interest rates, and the rising popularity of ETFs among both retail and institutional investors [6] - The digitization of workflows and a shift towards data-driven trading are making electronic markets more appealing, further supporting Tradeweb's growth [7] Technological Advancements - Automated trading, particularly through AI models, now accounts for over 40% of institutional trades, with 140 of Tradeweb's top 200 clients utilizing this technology, indicating a strong trend towards automation in trading [8] Market Position - Tradeweb's current market capitalization stands at $23 billion, with a gross margin of 87.32% and a dividend yield of 0.45%, reflecting its strong financial health [9] - The stock has experienced a 25% pullback from recent highs, providing a potential margin of safety for investors, while favorable industry trends are expected to continue into 2026 and beyond [10]

Core Insights - Tradeweb Markets has demonstrated exceptional revenue and profit growth, with a significant increase in trading volume and market penetration over the past decade [6][7]. Business Model - Tradeweb's revenue model is diversified, with approximately 75% of its revenue being variable, dependent on trading volumes and negotiated fees with institutional clients [4]. - The company also benefits from fixed revenue arrangements, contributing about 25% of its total revenue, which includes reliable market data streams [5]. Financial Performance - From 2016 to 2024, Tradeweb's revenue grew at an average annual rate exceeding 16%, with a notable acceleration to 21% year-over-year growth in 2025 [6]. - Net income increased almost sixfold to $695 million during the same period, with EBITDA growing at an average rate of 21% annually [7]. Cash Flow and Capital Allocation - Tradeweb generated approximately $1 billion in free cash flow over the past 12 months, supporting a strong balance sheet with $1.9 billion in cash and cash equivalents [8]. - The company employs a balanced capital allocation strategy, investing in acquisitions and organic growth while also returning capital to shareholders through modest stock repurchases [9][10]. Market Position and Future Outlook - Despite recent financial success, Tradeweb's stock has underperformed, declining nearly 20% over the past year, prompting the company to focus on growth strategies to improve shareholder value [11].

Core Insights - Tradeweb Markets is a crucial service provider for institutional investors, facilitating efficient trading in financial markets globally [3][5][9] - The company operates electronic marketplaces primarily focused on fixed income investments, while also catering to equity investors through ETFs [5][6] Company Overview - Tradeweb has established a reputation over 25 years, serving over 3,000 clients across 85 countries, including 90% of the top 100 global asset managers and 80% of the 25 largest insurance companies [9] - The company trades more than 50 products and is a leader in electronic markets for government bonds, mortgage-backed securities, and interest rate swaps [10] Trading Operations - Tradeweb's electronic platform handles an average of $2.5 trillion in trades daily, providing services from order placement to trade execution and reporting [10] - The company targets four asset classes: rate-related fixed-income investments, credit, equity (ETFs), and money market instruments [6] Market Data Services - Tradeweb offers proprietary market data products to help institutions make informed trading decisions [7] Financial Performance - The next article in the series will discuss Tradeweb's financial performance and its impact on shareholder returns [11]

Group 1 - Tradeweb Markets Inc. is identified as one of the best depressed stocks to buy currently, with TD Cowen analyst Bill Katz reducing the price target from $140 to $131 while maintaining a "Buy" rating [1] - Barclays has raised its price target on Tradeweb Markets from $121 to $124, keeping an "Equal Weight" rating, indicating a positive outlook ahead of earnings reports [2] - The analyst noted an increase in total volumes across equities, options, and futures quarter-over-quarter, along with a sequential rise in volatility [2] Group 2 - Tradeweb Markets operates electronic marketplaces, and while it shows potential as an investment, certain AI stocks are considered to offer greater upside potential with less downside risk [3]

Group 1 - The trading activity on the Tradeweb European ETF marketplace amounted to EUR 30.985 billion [3] - The total traded volume for U.S.-listed ETFs reached 45.971 billion [3] - The trading volume for European-listed ETFs shows a significant increase, indicating a growing interest in this market segment [3]

Core Viewpoint - The CEO of Tradeweb emphasizes that continuous trading will become standard across markets, reflecting the rapid adoption of this concept [1] Group 1 - Tradeweb's CEO indicates that there is "no doubt" about the shift towards round-the-clock trading [1] - The letter published by the CEO highlights the accelerating pace at which continuous trading is being accepted in the market [1]

Core Insights - Tradeweb achieved record results across multiple products in 2025, indicating strong earnings growth and solid performance in the electronic markets sector [2] Company Overview - Tradeweb is recognized as one of the largest and most diversified operators of electronic markets globally, highlighting its significant presence in the industry [1] Future Outlook - The discussion will focus on the future of fixed income electronic markets, exploring Tradeweb's growth opportunities and the evolving market structure [2]

Tradeweb Markets Conference Summary Company Overview - **Company**: Tradeweb Markets (NasdaqGS:TW) - **Industry**: Electronic trading platforms, particularly in fixed-income markets Key Points and Arguments Financial Performance - Tradeweb reported nearly high-teens earnings per share growth in 2025, primarily driven by revenue increases despite tough year-over-year comparisons [7][19][186] - The company anticipates continued strong performance into 2026, with organic growth drivers identified [7][19] Market Environment - The debt markets are experiencing growth, with central banks being less active, creating favorable conditions for Tradeweb's business [19] - The current market structure is evolving, with a shift towards electronic trading, particularly in the swaps market [27][34] Swaps Market - Tradeweb's swaps business has seen a revenue increase of approximately 35% year-over-year [38] - The company is focusing on electronifying non-cleared swaps and expanding its international swaps business, particularly in Australia and Japan [28][34] - There is a significant opportunity to transition the wholesale swaps market from a voice-oriented to an electronic model, which is still in early stages [32][34] Credit Market - Tradeweb's credit business, including US Investment Grade (IG) and High Yield, has room for growth, with a focus on increasing dealer proactivity in electronic trading [84][85] - The company is exploring traditional RFQ (Request for Quote) mechanisms to enhance trading efficiency and market share [95][97] Emerging Markets - Tradeweb has made significant progress in the emerging market (EM) credit space, leveraging its strengths in rates to penetrate this area [132][136] - The company aims to build strong sales engagement and capitalize on portfolio trading as a leading driver in EM credit [134][136] Tokenization and Innovation - Tradeweb is exploring the potential of tokenization in financial markets, particularly through its partnership with Canton Network, which aims to enhance collateral management [142][144][178] - The company is taking a pragmatic approach to innovation, focusing on building relationships and understanding the evolving landscape of digital assets [177][183] Q4 Outlook - For Q4 2025, Tradeweb expects continued momentum, with November showing significant growth in average daily revenue compared to the previous year [186][191] - The company acknowledges challenges in the credit market but remains optimistic about its diverse platform and leading position in the rates market [195][196] Additional Important Insights - The conversation highlighted the importance of adapting to client behavior and market dynamics, particularly in the context of electronic trading [54][56] - Tradeweb's strategy includes solving client problems and enhancing trading efficiencies, which are critical for maintaining competitive advantage [60][122] - The company is aware of pricing pressures and is focused on preserving value for clients while navigating fee structures [118][120] This summary encapsulates the key insights from the Tradeweb Markets conference, emphasizing the company's growth strategies, market dynamics, and future outlook.