Wedgewood Partners, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Wedgewood Composite’s net return was -6.3% compared to the Standard & Poor’s – 4.3%, the Russell 1000 Growth Index’s -10.0% and the Russell 1000 Value Index’s 2.1% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Visa Inc. (NYSE:V). Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was -2.51%, and its shares gained 21.50% of their value over the last 52 weeks. On April 16, 2025, Visa Inc. (NYSE:V) stock closed at $331.33 per share with a market capitalization of $639.139 billion.
Wedgewood Partners stated the following regarding Visa Inc. (NYSE:V) in its Q1 2025 investor letter:
“Visa Inc. (NYSE:V) was a top contributor to portfolio performance during the quarter. The Company reported +10% revenue growth and +14% adjusted earnings per share growth, driven by strong cross-border payment volume growth of +16%. The absolute payment transactions and volumes that Visa handles across the globe are staggering: $13.4 trillion in volume on 240 billion transactions during 2024. Despite this massive size, there continues to be large, untapped addressable markets persist, particularly in cash and checks still in use to the tune of, believe it or not, of $11 trillion. At the heart of this activity are traditional banks that issue Visa-branded cards. However, increasingly popular forms of payments such as peer-to-peer, business-to-consumer, and even business-to-business are driving Visa’s volumes beyond traditional consumer payments. There continues to be ample room for Visa to expands its network value proposition and grow at attractive rate years to come.”
A close-up of a credit card being swiped on a payment terminal, reflecting the company’s payments technology.
Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 181 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the fourth quarter which was 165 in the previous quarter. Visa Inc. (NYSE:V) had a strong start to fiscal year 2025 with $9.5 billion in net revenue, up 10% year-over-year, and a 14% increase in EPS. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Visa Inc. (NYSE:V) in another article, where we shared the list of best blue-chip stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 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.