CME Group, Inc. (NASDAQ:CME), operates the world’s largest and most diversified financial exchanges for trading derivatives. Shares increased 14% in the December quarter due to greater post-election trading activity with average daily volumes up 24%. CME is also benefiting from investor expectations for a more normalized interest rate environment and greater hedging activity. We continue to own the stock because we expect solid earnings growth from higher trading and clearing volumes.
From Baron Funds' Fifth Avenue Growth Fund fourth quarter 2016 commentary.
