Is Intercontinental Exchange (ICE) Trading at a Compelling Valuation?

3 weeks ago 11

Soumya Eswaran

Mon, July 20, 2026 astatine 8:37 AM CDT 4 min read

L1 Capital, an concern absorption firm, released its "L1 Capital International Fund" (unhedged) second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive discusses the existent concern situation arsenic a 'two-speed' but resilient planetary economy, accompanied by an uncertain future. The missive explores the imaginable of an AI bubble, distinguishing betwixt beardown fundamentals and speculative momentum. Additionally, the marketplace displays a 'narrow' character, marked by precocious exuberance and pronounced over-pessimism. Against this backdrop, the Fund returned +2.6% (net of fees) during the June 2026 quarter, compared to the benchmark instrumentality of +12.5% (all successful A$). The underperformance was driven much by which investments were not held successful the Fund. The Fund remains focused connected quality, valuation and the avoidance of imperishable superior loss, and believes the portfolio is positioned to present charismatic risk-adjusted returns for diligent investors. In addition, you tin cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

According to L1 Capital International Fund's Q2 2026 capitalist letter, Intercontinental Exchange, Inc. (NYSE:ICE), a US-based fiscal services institution that provides technology, data, and marketplace infrastructure to fiscal institutions, corporations, and authorities entities, detracted from the performance. On July 17, 2026, Intercontinental Exchange, Inc. (NYSE:ICE) closed astatine $139.65 per share, reflecting a marketplace capitalization of $78.97 billion. Intercontinental Exchange, Inc. (NYSE:ICE) posted a one-month instrumentality of 6.33%, and its shares mislaid 22.76% implicit the past 52 weeks.

L1 Capital International Fund stated the pursuing regarding Intercontinental Exchange, Inc. (NYSE:ICE) successful its Q2 2026 capitalist update:

"Intercontinental Exchange, Inc. (NYSE:ICE) is an illustration of a precocious prime concern that is not peculiarly AI-sensitive (positively oregon negatively) that we measure to beryllium trading astatine a compelling valuation. ICE is trading connected a guardant terms to net ratio of astir 17x, a level we person not seen since the GFC.

ICE has been a semipermanent holding of the Fund, and we person discussed the concern connected galore anterior occasions. In our view, not overmuch has changed. There are immoderate marketplace concerns astir the interaction AI whitethorn person connected the fig of radical utilizing ICE's proprietary information and analytics. We deliberation this is simply a peripheral contented and improbable to materially interaction ICE. The larger marketplace interest is that the Commodity Futures Trading Commission (CFTC), which regulates galore of ICE's markets, whitethorn authorise 'perpetual' derivatives and promote contention successful products specified arsenic crypto that could vie with established regulated exchanges.

As a little aside, the CFTC concern is highly unusual. Normally determination are 5 commissioners with nary much than 3 from the aforesaid governmental party. Today, pursuing a bid of resignations, determination is lone one, Michael Selig, appointed by President Trump. Selig has a inheritance successful instrumentality moving for crypto exchanges and promoting innovation..." (Click present to work the afloat text)

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