Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 3.88% gross of fees (3.82% net of fees), outperforming the Russell 1000 Value Index’s 1.01% and underperforming the S&P 500 Index’s 7.5% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the first quarter 2023 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a digital technology platform. On June 20, 2023, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $68.89 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 11.47%, and its shares lost 5.59% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $76.861 billion.
Aristotle Capital Value Equity Strategy made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its first quarter 2023 investor letter:
“We first invested in PayPal Holdings, Inc. (NASDAQ:PYPL), the online and mobile e‐ commerce payments company, during the third quarter of 2015. Over the past decade, we have studied PayPal’s ability to grow its extensive dual network (difficult to replicate, in our opinion) while navigating numerous competitors entering the industry. During our ownership period, the company has increased its payment volumes and made progress on many of its strategic initiatives, including adding partnerships with various companies (e.g., Walmart and American Express). We believe this has made the company a stronger force in the payments ecosystem. More recently, PayPal has shifted from its prior strategy of growing its user base to instead focusing on increasing transactions per user. The company has also seen an ongoing mix shift away from the PayPal branded checkout business toward its non‐branded business Braintree. The non‐ branded business has a lower take rate, as its customers are primarily large enterprises (like Uber, Airbnb and Live Nation) with which bespoke rates are negotiated. In addition, PayPal has experienced recent leadership changes, including the 2022 departure of then‐CFO John Rainey and CEO Dan Schulman’s announced retirement at the end of 2023. We will continue our research on the payments business and take our time to better understand these transitions. In the meantime, we decided PayPal was the best candidate for sale to fund the purchase of a what we believe to be a more optimal investment (which we will discuss at a later date).”
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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 2023 which was 115 in the previous quarter.
We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of best spring stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
