Should You Hold Mastercard Incorporated (MA) For the Long-Term?

Andvari Associates, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For the full year of 2022, the fund was down 33.8% net of fees compared to the SPDR S&P 500 ETF, which was down 18.2%. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Andvari Associates highlighted stocks like Mastercard Incorporated (NYSE:MA) in the fourth quarter 2022 investor letter. Headquartered in Purchase, New York, Mastercard Incorporated (NYSE:MA) is a payment technology company. On January 31, 2023, Mastercard Incorporated (NYSE:MA) stock closed at $370.60 per share. One-month return of Mastercard Incorporated (NYSE:MA) was 4.35%, and its shares lost 6.59% of their value over the last 52 weeks. Mastercard Incorporated (NYSE:MA) has a market capitalization of $354.294 billion.

Andvari Associates made the following comment about Mastercard Incorporated (NYSE:MA)  in its Q4 2022 investor letter:

Mastercard Incorporated (NYSE:MA) is the second largest payment technology company in the world. Its network enables the transfer of value and information between banks, merchants, and consumers. Despite the seeming ubiquitous presence of debit and credit cards, about 85% of the world’s purchase transactions are still in cash or check.

Due to its network effects, sharing an oligopoly with Visa, and providing an extraordinary amount of value to its stakeholders, Mastercard enjoys high free cash flow margins that are in the mid-40s. It has minimal debt on its balance and returns the majority of its cash flows to shareholders in the form of share repurchases and a small, but fast growing, dividend. We continue to own Mastercard as it wages its “war on cash.””

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

We discussed Mastercard Incorporated (NYSE:MA) in another article and shared the list of stocks receiving price target hikes after earnings beat. 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.

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