Viking Global’s 5 Long-Term Stock Picks

1. Visa Inc. (NYSE:V)

Stock Held by Viking Global Since: Q3 2016

Percentage of Viking Global’s Portfolio as of Q1 2023: 6.94%

Visa Inc. (NYSE:V) has been a part of Viking Global’s portfolio since the third quarter of 2016. On June 28, the corporation announced it will acquire Brazillian payments company, Pismo, for $1 billion which will enhance its core banking and issuer processing services to its financial technology clients.

In the first quarter of 2023, London-based hedge fund TCI Fund Management held the most shares in Visa Inc. (NYSE:V) with 19.29 million shares worth $4.35 billion. In the same quarter, Viking Global was the company’s third-leading stakeholder as it upped its stake in the company by 14% to 6.56 million shares worth $1.48 billion.

On July 7, analysts at MoffettNathanson reiterated an Outperform rating on Visa Inc. (NYSE:V)’s shares and raised the price target to $320 from $290, noting that the company has been delivering strong financial results for the last 9 quarters and has no new risks in the near future.

Manole Capital Management mentioned Visa Inc. (NYSE:V) in its second-quarter 2023 investor letter. Here is what it said:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa Inc. (NYSE:V) or Mastercard, that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”

You can also look at the 15 Most Sexually Active Cities in the World and the 10 Most Profitable Franchises To Buy in 2023.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.