Group 1 - Brown Brothers Harriman's BBH Select Series – Mid Cap ETF decreased by 3.9% in Q4 2025, underperforming the Russell Midcap Index which returned 0.2% [1] - The year 2025 was marked by the outperformance of unprofitable and highly volatile companies, with healthcare and materials being the top-performing sectors in Q4, while communication services and real estate sectors declined [1] - The firm anticipates a market shift back to financial fundamentals such as profitability and cash flow [1] Group 2 - Tradeweb Markets Inc. (NASDAQ:TW) was highlighted in the investor letter, showing a one-month return of 8.53% but a 52-week loss of 6.35%, with a market capitalization of $27.273 billion as of March 10, 2026 [2] - The company operates an electronic marketplace and trading platform, facilitating price discovery and automating execution and post-trade processing [3] - Tradeweb has pioneered electronic trading in U.S. Treasuries, with approximately 70% of U.S. Treasuries now traded electronically, up from about 40% a decade ago, and similar trends are observed in other asset classes [3]

Core Insights - Tradeweb Markets Inc. reported a total trading volume of $61.8 trillion for February 2026, with an average daily volume (ADV) of $3.1 trillion, reflecting a year-over-year increase of 23.4% [1] Group 1: Trading Volume - Total trading volume for February 2026 was $61.8 trillion [1] - Average daily volume (ADV) for the month was $3.1 trillion, marking a 23.4% increase year-over-year [1] Group 2: Record Highlights - Record ADV in fully electronic U.S. high-grade credit [1] - Record ADV in global repurchase agreements [1] - Record ADV in other money market instruments [1]

Core Insights - NewBridge Asset Management's Q4 2025 letter indicates that equity markets maintained upward momentum due to resilient economic growth and solid corporate returns [1] - The NewBridge Large Cap Growth Strategy generated positive returns but underperformed against the Russell 1000® Growth Index [1] - The portfolio faced contrasting performances from significant holdings like Uber Technologies, Inc. and the absence of Tesla, Inc. [1] Company Insights - Tradeweb Markets Inc. operates electronic marketplaces for trading interest rate and credit products, money markets, and equities [3] - The company serves a diverse client base including institutional investors, hedge funds, banks, and retail brokerage firms [3] - Tradeweb has 1,350 employees and operates in 10 countries, serving 2,800 clients across 70 countries [3] Market Insights - The rates and credit trading market is large and growing, with significant opportunities for electronification [3] - Competitors in the electronic trading space include MarketAxess, Bloomberg, Trumid, Citadel, and Jane Street [3] - The shift towards electronic trading platforms in fixed income and interest rate swaps presents market share opportunities for Tradeweb [3] Performance Insights - Tradeweb's one-month return was -1.41%, and its shares declined by 17.49% over the past 52 weeks [2] - As of January 26, 2026, Tradeweb's stock closed at $106.34 per share, with a market capitalization of $23.234 billion [2]

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: U.S. Legal and Regulatory Developments - The U.S. Department of Justice has confirmed the legality of taking action against smuggling boats, which could significantly change maritime interdiction strategies [2][9] - Fentanyl has been classified as a chemical weapon, intensifying the legal framework for operations against drug trafficking [2][9] Group 2: Serbia's Energy Crisis - Serbia faces a critical decision regarding its only oil refiner, which is under Russian ownership, due to persistent U.S. sanctions [3][9] - The Serbian Energy Minister indicated that the country must either nationalize the company or risk running out of crude oil, highlighting geopolitical pressures on energy security [3][9] Group 3: Market Performance - Major global indices experienced slight upward movements over the weekend, with the DAX up 0.04%, DOW rising 0.03%, and NASDAQ increasing by 0.06% [4][9] - U.S. Oil prices climbed 0.46% to 6011, while Gold remained stable at 4084 [5][9] Group 4: Transformation of Financial Infrastructure - The Chicago Board of Trade's trading floor is being repurposed into an electricity substation by Commonwealth Edison, symbolizing the shift towards electronic trading [6][9]

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]

Core Insights - CME Group Inc. shares have increased by 23.1% over the past year, outperforming the industry growth of 5.8%, the Finance sector's return of 17.2%, and the S&P 500 composite's appreciation of 17.6% [1] - CME Group's market capitalization stands at $96.84 billion, with an average trading volume of 2 million shares over the last three months [1] - The company has a strong track record of beating earnings estimates, achieving this in three of the last four quarters with an average beat of 1.62% [1] Valuation - CME Group shares are currently trading at a forward price-to-earnings ratio of 23.44X, which is lower than the industry average of 24.19X, indicating that the shares are undervalued [2] - Other companies in the sector, such as Intercontinental Exchange Inc. and Nasdaq, are also trading at discounts to the industry average, while Cboe Global Markets is trading at a higher multiple [3] Technical Analysis - CME shares closed at $268.73, trading above the 200-day simple moving average of $261.41, suggesting solid upward momentum [4] Revenue Drivers - CME's primary revenue source comes from clearing and transaction fees, which are bolstered by market volatility [7] - The growth in electronic trading and increased interest in cryptocurrencies are also contributing to revenue growth [7] Growth Projections - The Zacks Consensus Estimate projects an 8.7% year-over-year increase in earnings per share (EPS) for 2024, with revenues expected to reach $6.53 billion, reflecting a 6.5% year-over-year improvement [9] - For 2026, EPS and revenue estimates indicate increases of 3.6% and 4.7%, respectively, compared to 2025 estimates [9] Analyst Sentiment - Two out of eleven analysts have raised their earnings estimates for 2025 and 2026 in the past 60 days, leading to a 0.2% upward revision in the Zacks Consensus Estimate for both years [10] Price Target - The average price target from 18 analysts is $286.17 per share, indicating a potential upside of 8.2% from the last closing price [11] Market Position - CME Group benefits from strong organic growth, particularly during periods of heightened market volatility, which increases trading activity and revenue from fees [13] - The company is well-positioned to capitalize on a more crypto-friendly regulatory environment, which is expected to enhance its growth prospects [14] Financial Performance - CME has demonstrated strong financial performance, with free cash flow conversion exceeding 85% in recent quarters, indicating solid earnings quality [15] - The company maintains a robust capital base that supports growth initiatives, including expanding its market data business and product offerings [15] Dividend Policy - CME Group has a strong dividend history, paying five dividends per year, with the fifth being variable based on excess cash flow, making it attractive for yield-seeking investors [16] Investment Outlook - Given its solid growth projections, attractive valuation, and positive analyst sentiment, CME Group is considered a compelling investment opportunity [17]