Miami International Holdings Inc

We initiated a position in Miami International Holdings during the second quarter. MIAX operates electronic exchanges across several areas of the U.S. financial markets. Exchange businesses can possess attractive characteristics, including transaction-based revenue, operating leverage and network effects that may strengthen as liquidity and participation grow. Our interest in MIAX rests on the combination of its existing position in U.S. listed options, its proprietary technology infrastructure and its ability to introduce new products across a broader derivatives platform. The company has continued to gain share in certain markets while investing in new products and partnerships.

Miami International Holdings, Inc. was mentioned in the context of performance attribution, specifically noting that it detracted from relative performance within the Financials sector. However, there was no explicit directional argument made regarding its future prospects or investment thesis.

The recent IPO of Miami International Exchange (MIAX) is expected to contribute significantly to future incentive fees, suggesting an additional $1.00 per share in value for 2026. This valuation indicates that the current share price of $23.50 is at a discount when considering cash, investments, and incentive fees. The core asset management business is also projected to generate approximately $1.30 per share of operating income this year, further supporting the argument that the company is undervalued. Overall, MIAX represents a strong investment opportunity with a solid growth trajectory.

The recent IPO of Miami International Exchange (MIAX) is expected to contribute significantly to future incentive fees, suggesting an additional $1.00 per share in value for 2026. This valuation indicates that the year-end price of $23.50 is at a discount when considering cash, investments, and incentive fees. The core asset management business is also projected to generate approximately $1.30 per share of operating income this year, further supporting the undervaluation thesis. Overall, MIAX represents a strong investment opportunity with substantial growth potential.