Here’s What Makes Mastercard (MA) a Smart Investment Option

L1 Capital, an investment management firm, released its “L1 Capital International Fund” fourth quarter 2022 investor letter, a copy of the same can be downloaded here. In the fourth quarter, the L1 Capital International Fund returned 1.7% compared to its benchmark which had a 4.4% return for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, L1 Capital International Fund mentioned Mastercard Incorporated (NYSE:MA) and explained its insights for the company. Founded in 1966, Mastercard Incorporated (NYSE:MA) is a Harrison, New York-based financial services company with a $363.9 billion market capitalization. Mastercard Incorporated (NYSE:MA) delivered a 8.87% return since the beginning of the year, while its 12-month returns are up by 8.34%. The stock closed at $378.57 per share on January 23, 2023.

Here is what L1 Capital International Fund has to say about Mastercard Incorporated (NYSE:MA) in its Q3 2022 investor letter:

“During the December 2022 Quarter over 50% of the Fund’s holdings’ share prices increased by more than 10% in local currency with a number of them increasing by more than 20%. Five companies positively contributed over 0.5% (in AUD) to the Fund’s returns for the quarter which includes Mastercard Incorporated (NYSE:MA). Mastercard’s share price also increased over 20% in the December 2022 Quarter. These companies span a range of industries and size by market capitalisation and include both ‘Growth’ and cyclical ‘Value’ businesses. All meet the L1 Capital International unique definition of Quality.”

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Our calculations show that Mastercard Incorporated (NYSE:MA) ranks 7th on our list of the 30 Most Popular Stocks Among Hedge Funds. Mastercard Incorporated (NYSE:MA) was in 146 hedge fund portfolios at the end of the second quarter of 2022, compared to 137 funds in the previous quarter. Mastercard Incorporated (NYSE:MA) delivered a 23.88% return in the past 3 months.

In January 2023, we also shared another hedge fund’s views on Mastercard Incorporated (NYSE:MA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

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Disclosure: None. This article is originally published at Insider Monkey.