Polen Capital, an investment management firm, published its “Polen Global Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter of 2022, the Polen Global Growth Composite Portfolio (the “Portfolio) was down -13.30% and -13.54%, gross and net of fees, versus a decline of -5.35% for the MSCI ACWI (the “Index”). Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Polen Global Growth Fund mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) and explained its insights for the company. Founded in 1998, PayPal Holdings, Inc. (NASDAQ:PYPL) is a San Jose, California-based multinational financial technology company with a $102.5 billion market capitalization. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -53.02% return since the beginning of the year, while its 12-month returns are down by -66.39%. The stock closed at $88.59 per share on June 07, 2022.
Here is what Polen Global Growth Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:
“After reporting third-quarter 2021 results, we spoke to PayPal’s CFO to discuss the guidance changes, the strategy going forward, and the rumors surrounding the Pinterest deal. It was a constructive conversation that increased our confidence in management’s direction for the business and in its ability to exploit its competitive advantages within the exciting area of digital payments. We increased our position size at the time, bringing it to an average weight. Our confidence in management declined, however, following their fourth-quarter results, which included a change in business strategy, disappointing 2022 guidance, and the removal of significant elements of their long- term guidance provided less than a year earlier and seemingly confirmed throughout 2021. Ultimately, we decided to exit our position completely based on these factors. While we think the backdrop for payments—specifically digital and mobile payments—is attractive and would have expected the tailwinds from COVID-19 to play very much to PayPal’s favor, management has been less successful than we would have expected. In short, we think execution has been poor, and we have lost confidence in management.”
Image by mohamed Hassan from Pixabay
Our calculations show that PayPal Holdings, Inc. (NASDAQ:PYPL) ranks 18th on our list of the 30 Most Popular Stocks Among Hedge Funds. PayPal Holdings, Inc. (NASDAQ:PYPL) was in 100 hedge fund portfolios at the end of the first quarter of 2022, compared to 110 funds in the previous quarter. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -11.60% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on PayPal Holdings, Inc. (NASDAQ:PYPL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
