Is PayPal (PYPL) a Smart Long-Term Investment Pick?

Distillate Capital Partners LLC, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Distillate’s U.S. FSV outperformed S&P 500 in the first quarter of 2022 with a return of -3.60% net of fees versus -4.60% for the benchmark. Since its inception in 2017, annualized performance is now 1.93% ahead of the S&P 500 after fees. The U.S. FSV strategy lagged against the Russell 1000 Value ETF benchmark in the first quarter of 2022 but remains 7.41% ahead annualized since inception. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Harding Loevner Global Equity Fund mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) and explained its insights for the company. Founded in 1998, PayPal Holdings, Inc. (NASDAQ:PYPL) is a San Jose, California-based financial technology company with an $84.5 billion market capitalization. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -61.31% return since the beginning of the year, while its 12-month returns are down by -74.67%. The stock closed at $72.97 per share on June 22, 2022.

Here is what Harding Loevner Global Equity Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:

“Taking advantage of valuation opportunities created by performance differences, the U.S. FSV strategy increased its weight in underperforming stock PayPal. PayPal (NASDAQ:PYPL) was the second largest new position and similarly lagged the market with a nearly 40% price decline in the first quarter.”

Our calculations show that PayPal Holdings, Inc. (NASDAQ:PYPL) ranks 18th on our list of the 30 Most Popular Stocks Among Hedge Funds. PayPal Holdings, Inc. (NASDAQ:PYPL) was in 100 hedge fund portfolios at the end of the first quarter of 2022, compared to 110 funds in the previous quarter. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -36.35% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on PayPal Holdings, Inc. (NASDAQ:PYPL) 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.