Here is How Billionaire Chris Hohn’s Hedge Fund Beat the Market with 33% Gain and His Top 5 Stock Picks

4. Visa Inc. (NYSE:V)

TCI Fund Management’s Equity Stake: $3.86 Billion
Number of Hedge Fund Holders: 157

Visa Inc. (NYSE:V) is one of the financial services investment plays that propelled billionaire Chris Hohn’s hedge fund to beat the market with a 33% gain after rallying 25% in 2023. Visa Inc. (NYSE:V) is a company that provides payment technology services. It runs a network that allows payment transactions to be authorized, cleared, and settled. It gained from a strong global economy.

Increased consumer spending saw Visa Inc. (NYSE:V) generate significant returns on fees from its products and solutions in the financial sector. In addition to the share price gain, the TCI Fund Management also benefited from a 0.79% yield as the company continues to reward investors with dividends. The hedge fund held stakes worth $3.86 billion in Visa Inc. (NYSE:V) as of Q3 2023.

By the conclusion of the third quarter in 2023, 167 hedge funds in Insider Monkey’s database possessed stakes valued at $24.4 billion in Visa Inc. (NYSE:V), indicating a slight decrease from the 171 funds in the previous quarter, which held stakes amounting to $24.9 billion.

In its October 2023 investor letter, Lakehouse Capital, an asset management firm, highlighted a few stocks, and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:

“Visa Inc. (NYSE:V) reported a strong result with net revenue increasing 11% year-on-year to $8.6 billion and non-GAAP earnings per share increasing by 21% to $2.33. As has been the case for many years now, the scalable nature of the business allows for revenue growth to outpace its costs, which places the company in a good position to navigate through this inflationary period. The network continues to grow, with credentials and merchant locations up 7% and 17%, respectively. Cross-border travel-related spend also maintained its robust growth, increasing 26% year-on-year while Visa Direct reported 7.5 billion transactions, up 19% year on-year, progressing on penetrating categories such as cross-border remittances. Altogether, we’re pleased with how the business is tracking and remain positive on Visa’s outlook.”

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