Goldman Sachs’ Best Hedge Fund Stock Picks: Top 20 Stocks

11. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Investors in Q2 2024: 142

GS’ Number Of Funds: 19

Mastercard Incorporated (NYSE:MA) is another sizeable payment processing company. Along with Visa, it commands the dominant position in the global payment market, which provides Mastercard Incorporated (NYSE:MA) with economies of scale and stable relationships with merchants and banks. However, 2024 has been an important year for the firm as it seeks to put its friction with retailers behind it by agreeing to $35 billion in fee reductions over the next couple of years in partnership with Visa. This stands to remove a significant risk for Mastercard Incorporated (NYSE:MA), which might see retailers switch to other platforms and erode its market share. While its market share places a smaller premium on growth, Mastercard Incorporated (NYSE:MA) has to continually innovate in order to compete with its larger rival. On this front, it has introduced new features in 2024, such as using AI to detect compromised payments terminal and prevent consumer fraud before it happens.

L1 Capital mentioned Mastercard Incorporated (NYSE:MA) in its Q2 2024 investor letter. Here is what the firm said:

“The share prices of Mastercard and Visa, both long term Fund investments, have both drifted down over recent months. There have been no dramatic developments, but there has been a general slight softening in the rate of growth of consumer spending in the U.S. and globally, a court decision rejecting Mastercard and Visa’s proposed settlement of a long-lasting dispute with U.S. merchants as well as other modest adverse regulatory developments. We continue to view Mastercard and Visa as two of the highest quality businesses in the world, and both are well placed to continue to deliver attractive, risk adjusted returns to shareholders over time.”