Flow Traders reported a disappointing third quarter, with lower volatility and subdued trading activity weighing heavily on profitability. The market reacted negatively, and I used the selloff to increase my position by one-seventh.
Despite the weak quarter, the traditional trading business continues to grow, with net trading income up 26% year to date. Quarterly earnings will always be volatile in this business, but I believe the longer-term investment thesis remains intact.
As usual, the transaction will be reflected in my portfolio using today’s closing price.