Nomura Large Cap Growth Fund on Intercontinental Exchange Inc.
Thesis
The fund continues to hold Intercontinental Exchange despite a quarter of weaker relative performance. Management views ICE as a dominant global exchange-infrastructure provider with a mission-critical role in fixed income and derivatives markets. Its data and connectivity businesses add recurring, high-margin revenue streams, while underlying volumes and open-interest trends remained healthy. The fund therefore sees the recent sentiment pressure as a near-term headwind rather than a deterioration in the core franchise.
“We continue to hold ICE given its dominant position in global exchange infrastructure”
Key risks
- Fading Middle East-driven energy volatility could reduce trading activity.
- Competition from Kalshi and Coinbase perpetual futures could pressure exchange valuation multiples.