Heartland Mid Cap Value Fund disclosed that MarketAxess Holdings was its biggest performance detractor in the second quarter of 2026, yet the fund remains confident in the position. The fund initiated the stake in the first quarter and added to it in the second, citing MarketAxess's status as the largest U.S. corporate bond electronic trading platform. It highlighted the company's exit from a heavy investment cycle, market share gains in a key U.S. credit trading protocol, and scale advantages in international markets where electronic trading penetration is low. The fund also noted a compelling valuation at 8.8 times consensus 2026 enterprise value to EBITDA versus a domestic peer median of 14.0 times, and a free cash flow yield exceeding 8%. MarketAxess shares closed at $114.87 on July 14, 2026, with a one-month return of negative 4.20% and a 52-week decline of 46.70%, giving it a market capitalization of $4.08 billion.
MarketAxess Holdings IncFund highlights compelling valuation (8.8x EV/EBITDA vs peer median 14.0x) and >8% free cash flow yield, indicating undervaluation.