We recently published a list of Top 10 Stocks to Buy According to Durable Capital Partners. In this article, we are going to take a look at where Shift4 Payments, Inc. (NYSE:FOUR) stands against other top stocks to buy according to Durable Capital Partners.
Durable Capital Partners is a Maryland-based hedge fund management firm founded in the second quarter of 2019 by Henry Ellenbogen. The firm primarily follows a long-term equity investment strategy, with a focus on early-stage and durable growth in small- and mid-cap equities across public markets. Ellenbogen, who serves as the Managing Partner and Chief Investment Officer, leads the firm’s investment approach.
Ellenbogen established Durable Capital Partners in 2019 and currently holds the roles of Managing Partner and Chief Investment Officer. Before founding Durable, he spent nearly two decades at T. Rowe Price Associates, Inc., where he served as Vice President and Chief Investment Officer for U.S. Equity Growth. During his tenure, he led the U.S. Small-Cap Growth Equity Strategy and managed the New Horizons Fund. Additionally, he was an active member of the U.S. Equity Steering Committee and the Corporate Governance Committee for U.S. Equity.
Between 2001 and 2019, Ellenbogen spearheaded private market investments in several high-profile companies. His leadership at the New Horizons Fund contributed to its recognition with multiple industry awards. Notably, the fund received Investor’s Business Daily’s Best Mutual Funds Award in 2018 across categories such as U.S. Diversified Equity Funds, Growth Funds, and Small-Cap Funds. Additionally, it earned the Thomson Reuters Lipper Fund Award for Best Small-Cap Growth Fund over a ten-year period (2017), a five-year period (2016), and both five- and ten-year periods (2013). Prior to his investment career, Ellenbogen served as Chief of Staff for U.S. Representative Peter Deutsch and gained experience as a Summer Associate at Goldman Sachs.
Academically, he graduated magna cum laude from Harvard College with a degree in History and Science. He later earned a J.D. from Harvard Law School and an MBA from Harvard Business School, where he was recognized as a Baker Scholar. Additionally, he has taught as an adjunct professor at New York University’s Graduate School of Politics. Ellenbogen is a member of the Barron’s Roundtable and contributes to the Investment Committee of the Smithsonian Institution. He also serves as Chairman of the Board for The Posse Foundation.
According to its most recent 13F filing for the fourth quarter of 2024, Durable Capital Partners reported $12.26 billion in managed 13F securities, with its top 10 holdings accounting for 47.59% of its portfolio.
Our Methodology
The stocks discussed below were picked from Durable Capital Partners’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1,000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A business person using a mobile point of sale device outside of a retail store.
Shift4 Payments, Inc. (NYSE:FOUR)
Number of Hedge Fund Holders as of Q4: 38
Durable Capital Partners’ Equity Stake: $532.48 Million
Shift4 Payments, Inc. (NYSE:FOUR) is a payment processing company headquartered in Allentown, Pennsylvania. Founded in 1999 by Jared Isaacman when he was just 16 years old, the company has expanded to serve over 200,000 businesses across industries such as retail, hospitality, leisure, and restaurants. The company specializes in innovative commerce solutions, offering both mobile payment software and hardware to streamline transactions for its clients.
On February 18, 2025, Shift4 Payments, Inc. (NYSE:FOUR) reported its fourth-quarter earnings for 2024, delivering results that exceeded market expectations. The company posted earnings per share (EPS) of $1.35, surpassing analysts’ estimates of $1.13. Revenue for the quarter reached $887 million, significantly outpacing the projected $406.93 million. Despite this strong performance, the company’s stock experienced an 8.87% drop in aftermarket trading, falling to $114.51 from its previous close of $121.28.
CEO Jared Isaacman emphasized Shift4’s dominance in key industries, stating that the company leads in hospitality, sports, and entertainment while ranking second in the restaurant sector. Additionally, President Carolyn Lauber highlighted the strategic significance of the Global Blue acquisition, describing it as a market-leading payment platform with a vast network of luxury brand partners worldwide. With a strong liquidity position and a current ratio of 2.98, Shift4 Payments, Inc. (NYSE:FOUR) is well-positioned to continue its growth trajectory, though market dynamics will play a crucial role in shaping its future performance.
Investors who acquired shares of Shift4 Payments, Inc. (NYSE:FOUR) over the past year are likely unfazed by the stock’s recent decline. Despite the downturn, the $11.3 million worth of shares purchased by insiders has appreciated significantly, now valued at $17.5 million. This increase indicates a strong return on their investment, reinforcing confidence in the company’s long-term potential. Shift4 Payments demonstrates strong growth potential, as evidenced by its impressive Q4 2024 earnings, which surpassed expectations, making it a good stock to buy.
Overall, FOUR ranks 6th on our list of top stocks to buy according to Durable Capital Partners. While we acknowledge the potential for FOUR 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 time frame. If you are looking for an AI stock that is more promising than FOUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
