Multiple Factors Pulled Down Global Payments (GPN) in Q2

Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and consumer discretionary, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Global Payments Inc. (NYSE:GPN). Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments. The one-month return of Global Payments Inc. (NYSE:GPN) was 8.53%, and its shares lost 18.29% of their value over the last 52 weeks. On July 16, 2025, Global Payments Inc. (NYSE:GPN) stock closed at $82.66 per share, with a market capitalization of $20.159 billion.

Oakmark Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its second quarter 2025 investor letter:

“Global Payments Inc. (NYSE:GPN) was the top detractor during the quarter. The U.S.-headquartered transaction and payment processing company’s shares sold off during the period as investors reacted negatively to an announced acquisition of Worldpay and divestiture of the Issuer Solutions business. We believe investors underappreciate the long-term strategic and financial merits of this transaction. Moreover, we are pleased that management is still committed to returning a substantial amount of capital to shareholders. We believe Global Payments can return close to one-third of its current market cap to shareholders over the next three years and that capital returns could grow meaningfully from there as the benefits of the Worldpay deal are fully realized.”

Is Global Payments Inc. (GPN) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

A payment terminal in action with customers apart of the experience.

Global Payments Inc. (NYSE:GPN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Global Payments Inc. (NYSE:GPN) at the end of the first quarter, which was 71 in the previous quarter. While we acknowledge the risk and potential of GPN 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 GPN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Global Payments Inc. (NYSE:GPN) and shared the list of best tech stocks to buy under $100. In addition, please check out our hedge fund investor letters Q2 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.