Loomis Sayles, an investment management company, released its “International Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 13.10% vs. 8.06% for the MSCI ACWI Ex USA Index (Net) in the quarter. Stock selection in consumer discretionary, information technology, financials, consumer staples, and communication services sector, as well as allocation s to the consumer discretionary and consumer staples sectors, all positively impacted the fund’s relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Loomis Sayles International Growth Fund highlighted stocks like Adyen N.V. (OTC:ADYEY), in the third quarter 2024 investor letter. Adyen N.V. (OTC:ADYEY) is a payment platform company headquartered in Amsterdam, the Netherlands. The one-month return of Adyen N.V. (OTC:ADYEY) was 2.86%, and its shares gained 16.20% of their value over the last 52 weeks. On December 26, 2024, Adyen N.V. (OTC:ADYEY) stock closed at $14.98 per share with a market capitalization of $47.04 billion.
Loomis Sayles International Growth Fund stated the following regarding Adyen N.V. (OTC:ADYEY) in its Q3 2024 investor letter:
“Adyen N.V. (OTC:ADYEY) is a global merchant acquisition and payment solutions provider based in Amsterdam. Surinamese for “to start over again,” the company was founded in 2006 by executives who previously founded Bibit, which was sold to Worldpay in 2004 and became the e-commerce platform for the world’s largest merchant acquisition company. Adyen was created to serve as a next-generation, integrated provider of payment solutions to merchants, and today the company supports over 250 payment methods globally across online, mobile, and point-of-sale (POS) transactions for clients that include Facebook, Microsoft, Netflix, and Uber.
A holding since fund inception, Adyen reported financial results for the first half of 2024 that were fundamentally strong and above consensus expectations for volumes, revenues, and EBITDA. The company’s results included 24% revenue growth and 45% volume growth, benefiting from both share gains with existing clients as well as new client acquisitions such as Crate & Barrel in North America and Ikea in Mexico. Growth was also above our estimate of personal consumption expenditures, card-based purchases, and omni-channel payments, suggesting the company continued to expand its market share during the period. Because Adyen provides better pricing to merchants as their volumes increase, the company’s take rate declined to 14.7 basis points from 17 basis points in the prior-year period. However, Adyen now has 19 platforms for which it has processed at least €1 billion over the past twelve months, reflecting the success and scale of the company’s unified offering. During the period, EBITDA of €423 million rose 32% year over year and margins expanded 300 basis points to 46%. Free cash flow of €361 million rose 46% and represented a free cash flow conversion rate of almost 40%…” (Click here to read the full text)
A close-up of a credit card being swiped on a payment terminal, reflecting the company’s payments technology.
Adyen N.V. (OTC:ADYEY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Adyen N.V. (OTC:ADYEY) 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 Adyen N.V. (OTC:ADYEY) and shared RiverPark Large Growth Fund’s views on the company. 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.