Manole Capital Management’s Q3 2023 Investor Letter

Manole Capital Management, an investment management company, focused on covering the Financial and Technology sectors, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. Inflation is nearly two-thirds lower than a year ago, unemployment is negligible, and the economy is expanding nicely. The Fed has reiterated its intention to keep interest rates “higher for longer.” Fed Funds reached a 22-year high following the most recent rate hike. The firm tracks and analyzes credit card delinquencies and charge-offs to assess the American consumer’s health. The American consumer is becoming more reliant on credit and has depleted some of their 2021 stimulus savings. As a reminder, Manole Capital prefers payment processors, merchant acquirers, gateways, and networks over card issuers due to their credit sensitivity. It is critical to continue to watch these payment trends, regardless of which business is ultimately “left holding the bag.” The letter discussed PayPal Holdings, Inc. in detail. In addition, please check the fund’s top five holdings to know its best picks in 2023.