Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders In Q2 2024: 142

Category: Most popular with HFs and overweight among mutual funds

Mastercard Incorporated (NYSE:MA) is the second major payment processing platform provider in the US. It controls 24% of the US credit card market, which means that along with its larger rival, the firm controls 76% of the US market. The smaller position means that Mastercard Incorporated (NYSE:MA) has to be on the watch out for other companies to take away its market share. This is key in today’s rapidly dynamic financial technology market as technology creates room for alternative payment service providers to target merchants and users to potentially eat market share away from Mastercard Incorporated (NYSE:MA). Along with Visa, the firm has agreed to a $30 billion settlement to settle merchant worries about higher fees, but the deal was stopped by a court earlier this year. In fact, the tide is shifting particularly after the Justice Department sued Visa in September and alleged a debit card monopoly.

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.”