Solid Results Boosted Intercontinental Exchange (ICE) in Q1

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index fell 4.27% in the first quarter of 2025, marking a sluggish start to the year for the U.S. equities market. On the other hand, bonds offered a measure of stability, as the Bloomberg U.S. Aggregate Bond Index rose 2.78%. Aristotle Atlantic’s Core Equity strategy returned -5.90% gross of fees (-5.99% net of fees) in the quarter, underperforming the S&P 500 Index’s -4.27% total return. The relative underperformance was due to a mix of security selection and allocation effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Aristotle Atlantic Core Equity Strategy highlighted stocks such as Intercontinental Exchange, Inc. (NYSE:ICE). Intercontinental Exchange, Inc. (NYSE:ICE) 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 -9.52%, and its shares gained 20.09% of their value over the last 52 weeks. On April 21, 2025, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $155.03 per share with a market capitalization of $93.437 billion.

Aristotle Atlantic Core Equity Strategy stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its Q1 2025 investor letter:

"Intercontinental Exchange, Inc. (NYSE:ICE) was a relative contributor in the first quarter following a solid fourth quarter earnings report highlighted by continued strong trading activity in energy and interest rate products, additional efficiency gains, and positive commentary about the Mortgage Technology business. In addition, optimism improved following the company’s annual ICE Experience conference, which highlighted new AI solutions in its Mortgage Technology product suite. The company's AI efforts in Mortgage Technology are accelerating progress toward improving and digitizing workflows and positioning it to gain an increasing share of the long-term market opportunity in the mortgage industry."

Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the fourth quarter compared to 84 in the third quarter. While we acknowledge the potential of Intercontinental Exchange, Inc. (NYSE:ICE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared Oakmark Select Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 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.