Cooper Investors Global Equities Fund (Unhedged) - Cooper Investors Pty Limited on CME Group
Thesis
CME remains a Real Assets holding, but Cooper reduced the position after the CFTC allowed Kalshi to launch perpetual futures. The development creates a new competitive threat to CME's long-held futures franchises, including major equity benchmarks. Cooper notes that CME's moat has historically rested on both liquidity and regulation, and the regulatory component is now less certain. The fund is pursuing a more cautious version of the thesis because legal challenges may limit the new products, but the competitive risk has clearly increased.
“The second of these is now uncertain and we have reduced the position accordingly.”
Key risks
- Competition from Kalshi perpetual futures
- Regulatory uncertainty affecting CME's moat