5 Best Roth IRA Stocks Hedge Funds are Buying

4. Mastercard Incorporated (NYSE: MA) 

Number of Hedge Fund Holders: 151  

Mastercard Incorporated (NYSE: MA) is ranked fourth on our list of 10 best Roth IRA stocks hedge funds are buying. The stock has offered investors returns exceeding 18% over the course of the past year. The company is based in New York and provides payments services. On July 13, the firm announced that it had partnered with telecom provider Verizon to expand the reach of contactless shopping, autonomous checkout, and cloud point of sale solutions, using new 5G technology, on the payments network of the former. 

On July 15, investment advisory Baird maintained an Outperform rating on Mastercard Incorporated (NYSE: MA) stock and raised the price target to $482 from $454, affirming that it expected the firm to beat market estimates for earnings in the second quarter. 

Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE: MA) with 5.8 million shares worth more than $2 billion. 

In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE: MA) was one of them. Here is what the fund said:

“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”