Fenimore Bets on NASDAQ’s (NDAQ) Non-Transactional Revenue Streams

Fenimore Bets on NASDAQ’s (NDAQ) Non-Transactional Revenue Streams

Mon, September 21, 2026 at 3:19 PM GMT+3 3 min read

• NDAQ +2.44%

Fenimore Asset Management, an investment management company, released its Q2 2026 investor letter. The letter can be downloaded here. U.S. equity markets saw broad gains in Q2, driven by strong corporate earnings, economic resilience, and enthusiasm for artificial intelligence (AI). Major indices reached all-time highs, though the energy sector declined. Continued earnings growth, especially among AI-related investments, supported the rally. Technology, particularly semiconductors, led performance as demand for AI infrastructure surged. The Dividend Focus Fund rose 6.89% in the quarter, underperforming the Russell Midcap Index at 13.83%. Technology holdings delivered mixed performance in the quarter, with semiconductors surging, software falling on AI fears, while healthcare stocks lagged as investors favored riskier assets. Despite macroeconomic uncertainties and interest rate influences, Fenimore remains committed to investing in high-quality businesses. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Fenimore Asset Management highlighted Nasdaq, Inc. (NASDAQ:NDAQ). Headquartered in New York, New York, Nasdaq, Inc. (NASDAQ:NDAQ) is a technology company that serves capital markets and other industries. On September 18, 2026, Nasdaq, Inc. (NASDAQ:NDAQ) closed at $93.54 per share. Over the past month, Nasdaq, Inc. (NASDAQ:NDAQ) declined 5.31%, but its shares are up 4.01% over the past year. Nasdaq, Inc. (NASDAQ:NDAQ) has a market capitalization of $52.29 billion, and its stock has traded within a 52-week range of $76.55 to $101.79.

Fenimore Asset Management stated the following regarding Nasdaq, Inc. (NASDAQ:NDAQ) in its Q2 2026 investor letter:

"Nasdaq, Inc. (NASDAQ:NDAQ) is a leading global technology platform for modern markets and provides advanced intelligence solutions to more than 3,800 financial institutions. While it remains the single-largest U.S. equities exchange, NDAQ strategically shifted its focus toward non-transactional revenue streams."

Nasdaq, Inc. (NASDAQ:NDAQ) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 57 hedge fund portfolios held Nasdaq, Inc. (NASDAQ:NDAQ) at the end of the second quarter, compared to 56 in the previous quarter. While we acknowledge the potential of Nasdaq, Inc. (NASDAQ:NDAQ) 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 a previous article, we covered Nasdaq, Inc. (NASDAQ:NDAQ) and noted its Verafin unit's collaboration with Stablecore to integrate banking and crypto surveillance into a unified anti-fraud platform for banks offering stablecoins. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.