Greystone Capital Management, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. During Q2 2026, Greystone Capital’s median account return was +7.2%, trailing behind S&P 500 (+15.2%) and Russell 2000 (+21.5%). Year-to-date returns were +8.6%, compared to +10.2% and +22.5% for the respective indices. The firm’s performance is not tied to indices, as they do not own the index-driving companies. The letter emphasizes that Greystone’s strategy focuses on business fundamentals rather than chasing index-driven gains, particularly avoiding the current AI-driven market boom due to valuation risks. The investment strategy is based on recognizing opportunities amid market neglect rather than popularity, and the firm remains open to AI investments at appropriate valuations. Historically, the firm has outperformed with a cumulative +222.0% return since inception, compared to relevant indices, reflecting a commitment to fundamental business growth over time. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Greystone Capital Management highlighted Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) is a software and payment processing solutions company. On July 31, 2026, Shift4 Payments, Inc. (NYSE:FOUR) closed at $53.00 per share. One-month return of Shift4 Payments, Inc. (NYSE:FOUR) was 3.15%, and its shares lost 48.14% over the past 52 weeks. Shift4 Payments, Inc. (NYSE:FOUR) has a market capitalization of $4.2 billion.
Greystone Capital Management stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its Q2 2026 investor update:
“I originally shared the investment thesis for Shift4 Payments, Inc. (NYSE:FOUR) in our Q4 2025 letter, so I don’t have much to add here. However, very shortly after that letter was published, FOUR reported their Q4 / FY2025 results, which were strong, but revealed weaker than expected guidance for 2026 including slower than expected growth, near-term headwinds for their tax-free shopping business, and lower than expected free cash flow conversion. Negative sentiment toward payments related stocks hasn’t helped, and FOUR shares have declined -22% YTD, at one point down nearly -50%. I believe FOUR remains a compelling investment and could return multiples of the current share price, and I’ve been adding to our position. Importantly, I don’t believe a lot has to go right from here for the stock to work.
FOUR should continue to grow faster than the market because they’re exposed to integrated payments, have differentiated vertical software/products, and can cross-sell payments into their acquired customer bases. Also, incremental FCF conversion is still around 60%, which should drive 100–200 bps of annual total FCF conversion improvement as EBITDA grows. Beyond that, if the Global Blue deal doesn’t turn out to be a massive disaster, as I wrote here, FOUR will look incredibly cheap at today’s valuation…” (Click here to read the full text)
Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the first quarter, compared to 49 in the previous quarter. While we acknowledge the risk and potential of Shift4 Payments, Inc. (NYSE:FOUR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Shift4 Payments, Inc. (NYSE:FOUR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared the list of best payment processing stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
