Wedgewood Partners, an investment management company, released its “Wedgewood Partners Large Cap Focused Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 8.1% compared to the Standard & Poor’s 8.7%, Russell 1000 Growth Index’s 12.8%, and Russell 1000 Value Index’s 4.1% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wedgewood Partners Large Cap Focused Growth Fund highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the second quarter 2023 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. On July 19, 2023, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $74.22 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 8.24%, and its shares lost 10.31% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $83.8 billion.
Wedgewood Partners Large Cap Focused Growth Fund made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2023 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was the leading detractor from performance during the quarter. Total payment volume grew +12% (foreign exchange neutral) while revenues grew +10% (FX-neutral) and adjusted operating earnings grew +19%. E-commerce industry sales trends have normalized back to their pre-pandemic trend of growth, with high-margin branded payments keeping track with the industry. Despite this, investors were concerned PayPal’s fast growing, private label payments solutions will dilute Company returns. However, payments are a very scalable business, and we expect the Company will be able to manage both private label and branded to achieve attractive returns and double-digit growth. Although multiples in the payment industry have compressed, especially after the multi-year process of being added to the financial sector, PayPal’s businesses are substantially different enough from traditional spread-based businesses, in addition to having much more compelling growth drivers, that PayPal’s well-below market multiple should revert to its higher, historical average.”
PayPal Holdings, Inc. (NASDAQ:PYPL) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of first quarter which was 115 in the previous quarter.
We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of best Reddit stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
