Ray Dalio is Buying These 5 Stocks in 2022

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 144

Mastercard Incorporated (NYSE:MA) is a new arrival in billionaire Ray Dalio’s Bridgewater Associates portfolio, with the hedge fund buying 36,168 shares of the company in Q1 2022, worth $12.9 million. 

Mastercard Incorporated (NYSE:MA) announced on April 28 its Q1 financial results, posting earnings per share of $2.76, beating estimates by $0.60. The company’s revenue of $5.17 billion grew 24.36% year-over-year, surpassing market consensus by $267.59 million. 

On May 17, Goldman Sachs analyst Will Nance initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and a $460 price target, implying 38% upside. After “lackluster returns in 2021 and a choppy start to 2022,” the analyst is “constructive” on the payments sector, observing that relative valuations have fallen prominently over the last 6 months and the companies are positioned well to navigate a low-growth, inflationary world. He believes Mastercard Incorporated (NYSE:MA) will keep on delivering “best-in-class” earnings growth, due to “strong secular tailwinds, and strong operating leverage as the company continues to add scale.”

Among the hedge funds tracked by Insider Monkey, 144 funds were long Mastercard Incorporated (NYSE:MA) in Q4 2021, compared to 146 funds in the preceding quarter. Charles Akre’s Akre Capital Management owned a significant Mastercard Incorporated (NYSE:MA) stake in Q1 2022, comprising 5.85 million shares worth over $2 billion. 

Here is what Saturna Capital Amana Funds has to say about Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter:

“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”