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One Fund Manager Aims to Cash In on Nasdaq

 
By Lauren Covello
FOXBusiness
     

    At a time when the market’s day-to-day performance seems more unpredictable than ever, one thing can be certain -- people are trading. And one thing that's a pretty good bet is that people will be trading even more in the future.

    For Andy Bischel, manager of the AHA Socially Responsible Equity Fund (AHSRX), that’s just one reason why global exchange company Nasdaq OMX Group Inc. (NDAQ) is a good buy right now.

    Bischel believes Nasdaq OMX, which owns and operates the Nasdaq Stock Market as well as several stock exchanges across Europe, is “well-poised” to thrive amid the turmoil on Wall Street, arguing that, whether they’re buying or selling, investors are under the gun to get their money moving.

    “There’s an inherent generation of trading activity that goes on in all kinds of [market] environments,” he said.

    Though Nasdaq OMX is down 38% year-to-date through the end of September, Bischel sees growth potential in the company’s worldwide presence, increasing number of securities and improving fee structure.

    “There’s great value here,” he said.

    Recent actions have solidified the New York-based company’s position in the global market. This past February, Nasdaq completed its purchase of Swedish exchange OMX and now boasts over 3,900 listings in six continents -- the most worldwide listings of any major market.

    At the end of September, the combined Nasdaq OMX became the first global exchange to roll out pricing based on global transaction volume as well as new listing services to make it easier and more efficient for companies to list on multiple markets.

    Still, it’s future potential that Bischel believes makes Nasdaq OMX an attractive buy. According to Bischel, the contraction of the shadow banking system and the realities of counterparty risk will eventually necessitate the establishment of a “national clearinghouse mechanism” which will benefit the company. Bischel sees opportunity in the “proliferation of exchange-traded investment vehicles,” and says that the standardization of those contracts will increase the flow of securities for Nasdaq OMX.