Here’s Why You Must Remain Confident in Your Visa (V) Shares

Baron Funds, an asset management firm, published its “Baron Durable Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Durable Advantage Fund (the “Fund”) declined 10.3% (Institutional Shares) during the first quarter, compared to the 4.6% decline for the S&P 500 Index (the “Index”), the Fund’s benchmark. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Durable Advantage Fund mentioned Visa Inc. (NYSE:V) and explained its insights for the company. Founded in 1958, Visa Inc. (NYSE:V) is a San Francisco, California-based multinational financial services corporation with a $438.9 billion market capitalization. Visa Inc. (NYSE:V) delivered a -5.86% return since the beginning of the year, while its 12-month returns are down by -9.56)%. The stock closed at $204.00 per share on May 17, 2022.

Here is what Baron Durable Advantage Fund has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”

Our calculations show that Visa Inc. (NYSE:V) ranks 8th on our list of the 30 Most Popular Stocks Among Hedge Funds. Visa Inc. (NYSE:V) was in 142 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 143 funds in the previous quarter. Visa Inc. (NYSE:V) delivered a -10.46% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Visa Inc. (NYSE:V) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.