JB Global Capital, an investment firm, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund declined 12.1% in Q2, largely driven by Alibaba, its largest holding. However, since inception on January 3, 2023, the fund has returned 109.7%, compared with 94.4% for the S&P 500. Additionally, please check the fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, JB Global Capital highlighted PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading technology platform that provides digital payment solutions for merchants and consumers. On August 10, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) closed at $50.53 per share, reflecting a market capitalization of $59.07 billion. PayPal Holdings, Inc. (NASDAQ:PYPL) posted a one-month return of 24.94%, and its shares lost 12.92% over the past 52 weeks.
JB Global Capital stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2026 investor letter:
“I initiated PayPal Holdings, Inc. (NASDAQ:PYPL) at $39.84 per share in February, publishing my thesis in PayPal: Heads I Win, Tails I Don’t Lose Much, available in full to paid subscribers with downloadable EPV, SOTP, and DCF models. I bought PayPal because I believed the market was valuing a durable, cash-generative payments franchise as though it faced permanent structural decline. My analysis suggested that even under conservative assumptions, intrinsic value exceeded the market price by a meaningful margin. The investment ultimately rested on a simple conclusion
Since then, two things happened. On July 14th, Stripe and Advent International offered $60.50 per share, a ~52% premium to my entry, backed by roughly $50 billion in committed financing. Two weeks later, Q2 results provided additional evidence supporting several elements of the original thesis. Branded checkout stabilized at 2% for a second straight quarter, Venmo delivered its seventh straight quarter of double digit growth at 14%, Braintree accelerated to 13% from 11%, and management raised full-year guidance for both transaction margin dollars and EPS. Trailing twelve-month buybacks reached $6 billion, consistent with the pace assumed in my models and supportive of the intrinsic value framework.…” (Click here to read the full text)
PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 76 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the first quarter, compared to 78 in the previous quarter. While we acknowledge the risk and potential of PayPal Holdings, Inc. (NASDAQ:PYPL) 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 PayPal Holdings, Inc. (NASDAQ:PYPL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared a list of most promising fintech 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.
