Broyhill Asset Management, a boutique investment firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the portfolio increased 0.9% net of all fees and expenses, and year-to-date, the portfolio returned 12.3% net of all fees and expenses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Broyhill Asset Management highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the second quarter 2023 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. On August 4, 2023, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $62.75 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was -6.05%, and its shares lost 34.17% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $70.011 billion.
Broyhill Asset Management made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2023 investor letter:
“Our foray into the payments sector began a few years ago with an investment in Fiserv, which we detailed in our 2021 year-end letter to investors. While Fiserv continues to execute as expected, and the stock’s multiple has increased from recent lows of 14x to 16x earnings, shares still trade at a meaningful discount to the market. In the meantime, multiples across the “sexy, rapidly-growing disrupters” called out in our Fiserv thesis, have crashed like a house of cards in a hurricane. PayPal Holdings, Inc. (NASDAQ:PYPL) traded at nearly 70x earnings at its peak, or almost 3x the market’s multiple. It now trades at a multiple below Fiserv, roughly two-thirds of the market’s valuation. We didn’t think 70x was the right price a couple of years ago, and we don’t think 12x is the right price today. While the company has certainly had its share of missteps and miscalculations, we don’t think the business is broken. Competition has increased as share gains at Apple Pay have accelerated, heightening an already fiercely competitive landscape. At the same time, CEO Dan Schulman’s announced retirement has created a leadership void at the top. But a refocused management team under increased pressure from an activist investor to aggressively cut costs should drive accelerating free cash flow growth for the next several years. We have followed this company since our early investment in eBay, which was driven largely by the potential for a PayPal spin-off. We are happy to own it again at the current valuation.”
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PayPal Holdings, Inc. (NASDAQ:PYPL) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of first quarter which was 115 in the previous quarter.
We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of out of favor stocks that hedge funds love. In addition, please check out our hedge fund investor letters Q2 2023 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.
