5 Best Cryptocurrency Stocks to Buy According to Hedge Funds

4. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA), an American multinational fintech firm, is one of the premier cryptocurrency stocks to invest in. The company provides a Crypto Card Program, which helps customers with simple and real-time use of digital currency for daily transactions. Mastercard Incorporated (NYSE:MA) is also initiating a program to let financial institutions provide cryptocurrency trading to their clients.

On November 29, Redburn analyst Fahed Kunwar initiated coverage of Mastercard Incorporated (NYSE:MA) with a Neutral rating. The brand power of debit is dwindling as digital wallets become mainstream, contended the analyst, who believes the market underestimates the cyclical and structural concerns that are weighing down card stocks.

According to Insider Monkey’s Q3 data, 136 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), with collective stakes worth $13.8 billion, compared to 137 funds in the prior quarter worth $15 billion. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares valued at $1.6 billion. 

Here is what L1 Capital International specifically said about Mastercard Incorporated (NYSE:MA) in its Q2 2022 investor letter:

“Growth in electronic payments, the continued shift away from cash and cheques, and the provision of additional services such as fraud identification and prevention continue to power Mastercard Incorporated (NYSE:MA)’s growth (Figure 14). In person cross-border transactions are recovering alongside normalization of travel.

Mastercard and Visa (we have invested in both) continue to dominate the electronic payments industry outside of China, utilizing their own multi-faceted networks as well as Government and third-party payments infrastructure to facilitate transactions. Another perfect example of a ‘Noah’s Ark’ industry structure.

Regulation, technological disruption and disintermediation, and geopolitical constraints are perennial issues for consideration, but Mastercard (and Visa) management have repeatedly demonstrated their ability to manage these issues…” (Click here to read the full text)