5 Best Investments During High Interest Rates

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Visa Inc. (NYSE:V) functions as a global payments technology corporation. The company manages VisaNet, a transaction processing network facilitating the authorization, clearing, and settlement of payment transactions across the globe. On July 25, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.45 per share, in line with previous. The dividend was distributed on September 1, to shareholders of record on August 11. Visa Inc. (NYSE:V) announced stronger-than-expected growth in card spending, exceeding Wall Street’s expectations. It is one of the best investments to consider during high interest rates. 

According to Insider Monkey’s second quarter database, 171 hedge funds were bullish on Visa Inc. (NYSE:V), two down from the last quarter. Chris Hohn’s TCI Fund Management is the top stakeholder of the firm, with close to 17.8 million shares valued at $4.2 billion.

Baron FinTech Fund made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:

“We modestly trimmed Visa Inc. (NYSE:V), Mastercard Incorporated, and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo, Visa announced its intention to acquire the Brazilian company for $1 billion in late June.”

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