Hedge Funds Showering Their Blessings On These Credit Services Companies

Page 2 of 2
  1. American Express Company (NYSE:AXP)

Investors with Long Positions (as of June 30): 57

Aggregate Value of Investors’ Holdings (as of June 30): $15.84 Billion

Although the number of investment firms with American Express Company (NYSE:AXP) in their equity portfolios decreased from 65 at the end of March, the total investment increased from $15.62 billion while the stock was trading nearly sideways during this period. Warren Buffet‘s Berkshire Hathaway owns about 151.61 million shares of American Express Company (NYSE:AXP) valued at $11.78 billion. Considering its cheap valuation with a forward earnings multiple of 13.30 and interest from other prominent funds like Jeffrey Ubben’s ValueAct Capital, which took a $1 billion stake in the company recently according to Bloomberg, American Express Company (NYSE:AXP) has strong future prospects as an investment.

  1. Mastercard Inc (NYSE:MA)

Investors with Long Positions (as of June 30): 75

Aggregate Value of Investors’ Holdings (as of June 30): $7.74 Billion

The number of hedge funds holding Mastercard Inc (NYSE:MA)’s stock dropped from 83 at the end of the first trimester, and while the total investment increased from $7.63 billion, if you factor in the 9% rise in the stock price during the second quarter, you see that hedge funds sold off some shares. One of the major growth areas for Mastercard Inc (NYSE:MA) going forward is the opening of the French domestic market to credit cards. The second-largest market in Europe will be ushering in new regulations in June of next year, allowing Mastercard Inc (NYSE:MA) to compete with the local rival Cartes Bancaires, which has a near monopoly. Tom Russo‘s Gardner Russo & Gardner is the largest stockholder of Mastercard Inc (NYSE:MA) within our database, holding 10.03 million shares valued at $937.81 million.

  1. Visa Inc (NYSE:V)

Investors with Long Positions (as of June 30): 98

Aggregate Value of Investors’ Holdings (as of June 30): $7.88 Billion

Visa Inc (NYSE:V) is the only company on our list that gained an increase in hedge fund interest, as 93 funds had investments in the company at the end of March. However, the total investment of these firms dropped from $7.99 billion even though the stock price appreciated by more than 15% during the second quarter, indicating a rather sizable collective sale of shares. Ken Fisher‘s Fisher Asset Management, the largest stockholder of Visa Inc (NYSE:V) in our database, was not one of them, having increased its holding by 2% during the June quarter to 14.55 million shares. According to Sky News, Visa has been trying to strike a deal to acquire Visa Europe for around $21 billion. The European division is currently owned by a number of European banks and other entities.

Disclosure: None

Page 2 of 2