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

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders In Q2 2024: 163

Category: Most popular with HFs and overweight among mutual funds

Visa Inc. (NYSE:V) is the biggest payment processing company in the world. It is the dominant player in the US payment industry since it commands 52% of the US credit card market and 47% share of outstanding balances. Consequently, its commanding position in the credit card market is key to Visa Inc. (NYSE:V)’s hypothesis. The firm, along with smaller rival Mastercard, has agreed to a historic $30 billion settlement to assuage retailer concerns about high transaction fees. But the matter took another turn earlier this year when the court stopped the deal. The main threat to Visa Inc. (NYSE:V) comes from merchant dissatisfaction which makes them open up to additional payment platforms. On this front, the firm’s 30 day liability protection has also created friction with merchants, but Visa Inc. (NYSE:V) is also expanding its presence in international markets and new features for automatic payments to generate tailwinds.

Aoris Management mentioned Visa Inc. (NYSE:V) in its Q2 2024 investor letter. Here is what the firm said:

“Visa operates the world’s largest payments network, which facilitates the movement of money between merchants, financial institutions, consumers, businesses, and governments.

The company is best known for enabling consumers to make debit and credit card payments. In the year to September 2023, 4.3 billion Visa cardholders made 213 billion transactions on its network, to a total value of US$12.1 trillion.

Compared to cash and cheques, which are still widely used around the world, Visa’s network is a more convenient, secure, and ubiquitous way for consumers to pay. Visa has invested to reduce friction and fraud in the payments experience, to the benefit of both merchants and consumers.”

V is a stock that both mutual funds and hedge funds love according to Goldman Sachs. While we acknowledge the potential of V as an investment, our conviction lies in the belief that some 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 more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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