Intercontinental Exchange (ICE) Fell Due to Investors' Rotation

Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index surged in the third quarter, driven by investor optimism that grew on expectations of monetary easing, strong consumer demand, and solid corporate earnings. The Fund (Investor Shares) returned 2.57% (net of fees) in the quarter, trailing the S&P 500 Index’s 8.12% return. YTD, the fund returned 9.89% compared to 14.83% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as Intercontinental Exchange, Inc. (NYSE:ICE). Intercontinental Exchange, Inc. (NYSE:ICE) is a financial services company that offers market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities. The one-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was 3.52%, and its shares gained 7.30% of their value over the last 52 weeks. On December 22, 2025, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $161.45 per share, with a market capitalization of $92.06 billion.

Parnassus Core Equity Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its third quarter 2025 investor letter:

"Intercontinental Exchange, Inc. (NYSE:ICE), the operator of the New York Stock Exchange, saw its shares fall as investors rotated out of defensive, lower-beta stocks that had benefited from investor enthusiasm earlier in the year. The company’s fundamentals remain stable, in our view."

Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the third quarter, compared to 84 in the previous quarter. While we acknowledge the potential of Intercontinental Exchange, Inc. (NYSE:ICE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared the list of best financial sector dividend stocks to buy. In its Q3 2025 investor letter, Sands Capital Select Growth Strategy also cited the same reason for Intercontinental Exchange, Inc.’s (NYSE:ICE) decline in the quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.