Pelican Bay Capital Management Sold CME Group (CME) in Q4

Core Insights - Pelican Bay Capital Management (PBCM) reported a strong performance for its Concentrated Value Strategy, achieving an 8.5% return in Q4 2025, outperforming the Russell 1000 Value Index which returned 3.8% [1] - The full-year return for the strategy was 20.6%, compared to 15.9% for the Index, driven by AI-related stocks and commodities exposure [1] Company Performance - CME Group Inc. (NASDAQ:CME) had a one-month return of 13.31% and a 52-week gain of 21.46%, closing at $297.38 per share with a market capitalization of $106.912 billion on February 5, 2026 [2] - CME Group reported revenue of $1.65 billion in Q4 2025, reflecting an 8% increase from Q4 2024 [4] Investment Decisions - PBCM decided to exit its positions in CME Group Inc. and On Semiconductor, citing that CME was at the high end of fair value and the need to make room for new positions [3] - Despite acknowledging CME's potential, PBCM believes certain AI stocks present greater upside potential and less downside risk [4]