Pelican Bay Capital Management Sold CME Group (CME) in Q4

Pelican Bay Capital Management (PBCM), an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. PBCM Concentrated Value Strategy returned 8.5% in the quarter, compared to a 3.8% return for the Russell 1000 Value Index. The robust performance of AI-related stocks and commodities exposure drove the Strategy’s performance in the quarter. For the full year, the Strategy returned 20.6% compared to 15.9% for the Index. The firm seeks to invest in high-quality companies with a strong balance sheet. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, PBCM highlighted stocks like CME Group Inc. (NASDAQ:CME). CME Group Inc. (NASDAQ:CME) operates the leading financial exchange for trading futures and options on futures contracts. The one-month return for CME Group Inc. (NASDAQ:CME) was 13.31%, and its shares gained 21.46% over the last 52 weeks. On February 5, 2026, CME Group Inc. (NASDAQ:CME) stock closed at $297.38 per share, with a market capitalization of $106.912 billion.

PBCM stated the following regarding CME Group Inc. (NASDAQ:CME) in its fourth quarter 2025 investor letter:

"In addition to the trading activity we discussed above, we also made the decision to exit our positions in CME Group Inc. (NASDAQ:CME) and On Semiconductor (ON). Additionally, while CME is a great company and has been an excellent investment for our portfolio, it was at the high end of fair value, and we needed to make room for a new position as the portfolio was at out 20 stock holdings limit."

CME Group Inc. (NASDAQ:CME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held CME Group Inc. (NASDAQ:CME) at the end of the third quarter, which was 75 in the previous quarter. CME Group Inc. (NASDAQ:CME) reported revenue of $1.65 billion in Q4 2025, marking an 8% increase from Q4 2024.While we acknowledge the potential of CME Group Inc. (NASDAQ:CME) 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 CME Group Inc. (NASDAQ:CME) and shared Magellan Global Fund's views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 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.