Reasons for the Outperformance of Mastercard Incorporated (MA) in Q4

RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 2.41% in the fourth quarter compared to a 7.56% return for the S&P 500 Total Return Index and a 2.20% return for the Russell 1000 Growth Total Return Index. In 2022, the fund declined by 47.37% compared to -18.11% and -29.14% fall for the S&P 500 and the Russell 1000 Growth Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2022.

RiverPark Large Growth Fund highlighted stocks like Mastercard Incorporated (NYSE:MA) in the fourth quarter investor letter. Headquartered in Purchase, New York, Mastercard Incorporated (NYSE:MA) is a payment technology company. On February 10, 2023, Mastercard Incorporated (NYSE:MA) stock closed at $366.83 per share. One-month return of Mastercard Incorporated (NYSE:MA) was -2.31%, and its shares lost 1.96% of their value over the last 52 weeks. Mastercard Incorporated (NYSE:MA) has a market capitalization of $350.689 billion.

RiverPark Large Growth Fund made the following comment about Mastercard Incorporated (NYSE:MA) in its Q4 2022 investor letter:

“Mastercard Incorporated (NYSE:MA): On strong 3Q results, MA was our final top contributor for the quarter. Third quarter revenue grew 15% (23% on a currency neutral basis), while cross-border volumes (the key metric for travel) grew 44%. The company also reported strong expense discipline, which led to a 100-basis point improvement in operating margin (200 basis points currency neutral). EPS for the quarter was up 13% year over year (22% currency neutral), which was better than expected.

We believe that the long-term secular growth trend towards digital payments has been further enhanced by the COVID crisis. The growth in debit cards, contactless payments, e-commerce, and buy-now-pay-later (BNPL) are all driving digital payment penetration.”

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Mastercard Incorporated (NYSE:MA) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 146 hedge fund portfolios held Mastercard Incorporated (NYSE:MA) at the end of the third quarter, which was 137 in the previous quarter.

We discussed Mastercard Incorporated (NYSE:MA) in another article and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.