HONG KONG & LONDON--(BUSINESS WIRE)--Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has appointed Rich Chun as Managing Director, Head of Asia. Based in Hong Kong, Mr. Chun will oversee Tradeweb's business operations, client engagement efforts and strategic growth initiatives in the Asia Pacific region. A seasoned fixed income investor and trading leader, Mr. Chun brings over three decad. ...

Core Insights - Tradeweb Markets Inc. is expanding its dealer algorithmic execution capabilities for U.S. Treasuries, enhancing its position in global electronic marketplaces across various asset classes [1][4] - The new offering allows institutional clients to execute U.S. Treasury orders with improved precision, liquidity, and control through a suite of multi-dealer algo strategies [1][2] Institutional Client Benefits - The integration enables asset managers, hedge funds, and global institutions to manage orders over specific time horizons while maintaining existing dealer relationships and leveraging bank counterparty risk protections [2] - Tradeweb's platform provides clients access to both dealer algos and proprietary algos, offering a holistic approach for greater flexibility in trading [3] Dealer Participation - J.P. Morgan and Morgan Stanley are the first dealers to introduce their proprietary algo strategies on the Tradeweb platform, expanding the algo ecosystem for U.S. Treasury execution [4][6] - This collaboration aims to provide broader investor access to differentiated ways of accessing deeper liquidity [5] Strategic Goals - The expansion is part of Tradeweb's strategy to converge data analytics, algorithmic execution, and multi-asset liquidity within a unified platform [7] - The company plans to onboard additional global dealers in the coming months to deepen market depth and execution options for clients [7] Enhanced Decision-Making - By combining algorithmic strategies with extensive data offerings, Tradeweb aims to improve decision-making and market intelligence for buy-side clients [8] - The integration supports smarter trade execution by aligning order behavior with market conditions, volatility patterns, and benchmark movements [8] Industry Trends - There is a growing trend towards data-driven execution models that combine human oversight with AI-enhanced trading logic, aligning institutional workflows with automation and transparency [10]

Core Insights - The trading activity on the Tradeweb European ETF marketplace reached a total volume of EUR 70.4 billion [3] Group 1 - The data presented is derived from trading activity on the Tradeweb Markets institutional European- and U.S.-listed ETF platforms [2]

Core Insights - ClearBridge Investments' "ClearBridge Mid Cap Growth Strategy" reported modest gains in Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.8% [1] - The strategy is positioned to benefit from a fundamental, bottom-up investment philosophy despite near-term volatility [1] Company Performance - Tradeweb Markets Inc. (NASDAQ:TW) experienced a one-month return of -7.76% and a 52-week decline of 18.49%, closing at $108.77 per share with a market capitalization of $23.761 billion on October 9, 2025 [2] - Tradeweb was identified as the largest detractor in the financial sector for ClearBridge, with slowing market share gains against competitors despite strong core business fundamentals [3] Financial Highlights - In Q2 2025, Tradeweb reported record revenues of $513 million, reflecting a year-on-year increase of 26.7% on a reported basis and 24.7% on a constant currency basis [4] - Tradeweb is not among the 30 most popular stocks among hedge funds, with 34 hedge fund portfolios holding its shares at the end of Q2 2025, a slight decrease from 35 in the previous quarter [4]

Core Thesis - Tradeweb Markets Inc. is positioned as a leading global operator of electronic marketplaces, benefiting from the ongoing electronification of fixed-income and derivatives trading [2][4] Financial Performance - The company has achieved nearly 18% annual revenue growth from 2020 to 2024, with projected revenues of $1.73 billion in 2024 [2] - Tradeweb's net income reached $502 million in 2024, with earnings per share (EPS) compounding at over 26% annually since 2020 [3] - The company maintains a strong balance sheet with over $1.6 billion in net cash and negligible debt, supporting acquisitions and shareholder returns [3] Competitive Advantage - Tradeweb's competitive moat is characterized by a powerful network effect that attracts dealers and asset managers, creating a cycle of liquidity that is hard to replicate [4] - The company has developed a diversified platform across various financial products, enhancing its ecosystem and cross-selling opportunities [4] Valuation and Investment Thesis - Despite trading at a premium valuation compared to peers, this is justified by superior growth, operating leverage, and sustainable returns on capital [5] - A discounted cash flow (DCF) analysis suggests an intrinsic value of approximately $125 per share, indicating modest near-term upside but a compelling long-term investment opportunity with a projected 20%+ five-year internal rate of return (IRR) [6] Strategic Initiatives - Tradeweb's strategic initiatives include expansion into credit, portfolio trading, and international markets, with international revenues growing over 36% in 2024 [4]

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Viewpoint - Tradeweb Markets Inc. is considered a buy-the-dip stock despite a recent downgrade by Rothschild Redburn, which has cut its price target and changed its rating to 'Neutral' from 'Buy' [1][2] Group 1: Company Performance - The downgrade is attributed to challenges in the fixed income trading segment, impacting the company's growth outlook [2] - Tradeweb has maintained strong fundamentals, evidenced by a gross profit margin of 94.2% and a revenue growth of 28.05% [2] - The company has experienced strong structural growth tailwinds over the past five years, with expectations for continued growth over the next five years, although it may not meet all investor expectations [3] Group 2: Company Operations - Tradeweb operates electronic marketplaces for various financial assets, including rates, credit, equities, and money markets, catering to institutional, wholesale, and retail clients [4] - The company provides advanced technology for price discovery and order execution, along with data and analytics to enhance trading workflows and reduce risk for over 3,000 global clients [4]

Group 1 - The P/E ratio is a key metric for assessing a company's market performance against industry standards and historical earnings [4] - Tradeweb Markets Inc. has a P/E ratio of 43.11, which is significantly lower than the Capital Markets industry's aggregate P/E ratio of 140.5 [5] - A lower P/E ratio may suggest that shareholders expect the stock to perform worse than its peers or that the stock is undervalued [5] Group 2 - The P/E ratio has limitations and should not be used in isolation; it must be considered alongside other financial metrics and qualitative factors [7] - A lower P/E can indicate undervaluation but may also reflect a lack of expected future growth from shareholders [7] - Industry trends and business cycles can significantly impact a company's stock price, necessitating a comprehensive analysis for informed investment decisions [7]

Core Insights - Tradeweb Markets Inc. (NASDAQ:TW) is recognized as a stock with significant upside potential, but current operational signals are mixed [1][2] - The company's average daily volumes for August increased by 11% year-over-year, but this growth is slower than the 17% growth observed in July [1] - Quarter-to-date volumes are below both Morgan Stanley's and consensus forecasts, indicating potential challenges ahead [1] Operational Performance - Tradeweb Markets gained market share year-over-year in investment-grade and high-yield credit, but month-over-month figures show a decline [2] - Overall credit volumes fell short of expectations, contributing to a cautious outlook from analysts [2] Market Position - Tradeweb operates electronic marketplaces for trading financial assets, supporting multiple asset classes and global markets [3] - Despite the potential of Tradeweb as an investment, certain AI stocks are viewed as offering greater upside potential with less downside risk [3]

Group 1 - The trading activity on the Tradeweb European ETF marketplace reached a significant volume in EUR [4] - The data reflects the trends and dynamics of institutional trading in European-listed ETFs [3] Group 2 - The report indicates a growing interest in European ETFs among institutional investors [4] - The analysis provides insights into the performance and liquidity of the ETF market in Europe [3]