Montaka Global Investments, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The competitive advantages of the biggest investee companies in Montaka kept getting better, and their businesses were doing incredibly well. The companies in Montaka’s portfolio are far more valuable than what their stock prices suggest. This strengthens the emphasis of and lends greater credibility to Montaka’s investing strategy, which was updated and refined over four years ago. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like Mastercard Incorporated (NYSE:MA), in the third quarter 2024 investor letter. Mastercard Incorporated (NYSE:MA) is a payment technology company. The one-month return of Mastercard Incorporated (NYSE:MA) was 0.46%, and its shares gained 26.03% of their value over the last 52 weeks. On December 24, 2024, Mastercard Incorporated (NYSE:MA) stock closed at $535.71 per share with a market capitalization of $491.118 billion.
Montaka Global Investments stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:
“Montaka owns several duopolists in the financial services industry, including Visa and Mastercard Incorporated (NYSE:MA) in payments; and S&P Global in credit ratings and financial data services. These businesses have competitively protected and reliably growing core businesses. But they also have newer, high-probability adjacent opportunities. The market, however, is underappreciating this powerful combination, in our view.
For Visa and Mastercard, their core businesses in global payment processing are being complemented by significant growth in two areas:
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New processing opportunities in peer-to-peer, business-to-business, business-to-consumer, and government-to-consumer payments; and
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Value-added services, including risk, fraud-detection, issuance, acceptance, and open banking.”
A close-up of a credit card being swiped on a payment terminal, reflecting the company’s payments technology.
Mastercard Incorporated (NYSE:MA) is in 10th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 131 hedge fund portfolios held Mastercard Incorporated (NYSE:MA) at the end of the third quarter which was 142 in the previous quarter. Mastercard Incorporated’s (NYSE:MA) net revenue increased by 14% in the third quarter, indicating continued growth in its payment network and value-added services and solutions. While we acknowledge the potential of Mastercard Incorporated (NYSE:MA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Mastercard Incorporated (NYSE:MA) and shared the list of best digital currency and payments stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.