Marram Investment Management, an outsourced long-term investment solutions provider, released its fourth-quarter investor letter. A copy of the letter can be downloaded here. The Portfolio returned +4.0% (net) in 2025 and a cumulative return of 609.7% since its inception. The year reflects a notable divergence between market prices and business performance, but the firm evaluates the progress based on long-term profit metrics rather than short-term market fluctuations. Large Financials, MLP Energy Infrastructure, and Biopharma contributed positively to the performance, while Payment Technology holdings lagged the performance by 4% despite continued growth in per-share profits. The firm believes that operating leverage and appropriate capital allocation position these businesses to provide sustained free cash flow per share growth and exceptional upside potential over the long term. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Marram Investment Management highlighted stocks like Paymentus Holdings, Inc. (NYSE:PAY). Paymentus Holdings, Inc. (NYSE:PAY) is a leading cloud-based bill payment technology and solutions company that offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to non-discretionary end markets. On March 20, 2026, Paymentus Holdings, Inc. (NYSE:PAY) stock closed at $24.32 per share. One-month return of Paymentus Holdings, Inc. (NYSE:PAY) was -0.33%, and its shares lost 12.49% over the past 52 weeks. Paymentus Holdings, Inc. (NYSE:PAY) has a market capitalization of $3.06 billion.
Marram Investment Management stated the following regarding Paymentus Holdings, Inc. (NYSE:PAY) in its fourth quarter 2025 investor letter:
“The payment technology sector is currently experiencing a disconnect between operating fundamentals and share price performance. Investor fear of near-term growth deceleration has resulted in valuation compression and shareholder turnover, even as these businesses continue to compound value on a per-share basis. To illustrate this divergence, below we summarize recent operating progress alongside market performance for Paymentus Holdings, Inc. (NYSE:PAY).
Paymentus (PAY), over the past 3 years: • Revenue per share increased +85%, or +36% annualized. • Free Cash Flow per share increased +204%, or +74% annualized. • Share Price declined -7% over the past year.
Paymentus’ payment software serves non-discretionary end markets such as local municipalities, utilities, telecom, and insurers. Its software enables a smoother bill-payment process by enabling customers to engage via their preferred channel (text, desktop, in-person, etc.) or payment type (autopay, check, cash, ACH, card, digital wallet, etc.). This helps improve bill payment conversion (increased revenue), reduces inbound call volume (decreased cost), and higher customer satisfaction. This software is available via one integration and eliminates the need to maintain multiple systems and vendors. The Founder and CEO owns 24% of the company, providing strong alignment with shareholders…” (Click here to read the full text)
Paymentus Holdings, Inc. (NYSE:PAY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Paymentus Holdings, Inc. (NYSE:PAY) at the end of the fourth quarter, up from 23 in the previous quarter. In Q4 2025, Paymentus Holdings, Inc. (NYSE:PAY) reported record revenue of $330.5 million, an increase of 28.1% year-over-year. While we acknowledge the risk and potential of Paymentus Holdings, Inc. (NYSE:PAY) 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 Paymentus Holdings, Inc. (NYSE:PAY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Paymentus Holdings, Inc. (NYSE:PAY) and shared a list of best big tech stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 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.
