Giverny Capital Asset Management LLC recently published its second quarter investor letter 2022, which can be downloaded here. The fund’s model portfolio returns declined by 18.48% net of fees in the second quarter of 2022. The current events in the market influenced the stocks’ short-term prices. The fund generated an annualized return of 17.02% over the last nine quarters, net of fees. You can check the top 5 holdings of the fund to see its best picks for 2022.
In the second quarter 2022 letter, Giverny Capital Asset Management discussed the performance of its portfolios over the last few years. The letter mentioned that Mastercard Incorporated (NYSE:MA) grew its earnings per share by above 20% annually over the past five years. Mastercard Incorporated (NYSE:MA) is a payment-related technology company that operates internationally, and has a market capitalization of $341.894 billion. The shares of Mastercard Incorporated (NYSE:MA) closed at $353.79 per share on July 29, 2022. On a monthly time frame, the return of Mastercard Incorporated (NYSE:MA) rose to 11.17% whereas the shares lost -5.72% of their value over the last 52 weeks
Here is what Giverny Capital Asset Management specifically said about Mastercard Incorporated (NYSE:MA):
There is a lot to be worried about right now. Sadly, that is often the case. I try to listen to people who can help me understand our portfolio. At a conference in Chicago in June, an executive from our holding MasterCard said that, thanks to a strong job market and pandemic-relief payments, most US households have stronger balance sheets and spending capacity than three years ago; they are spending on experiences, restaurants, travel and shows. Said the executive: “Consumer spending is holding up, notwithstanding the war and social issues that are all around us.” In May, Mastercard Incorporated (NYSE:MA) saw 10% spending growth in every merchant category except airlines, and virtually every merchant category today is higher than pre-pandemic. And airline travel figures to rebound to pre-pandemic levels over the summer.
Over the past five years, current GCAM holdings Alphabet, Arista Networks, Credit Acceptance Corp., Ciena Corp., Eurofins Scientific, Five Below, Floor & Décor, Installed Building Products, Meta Platforms and SS&C all grew earnings per share by at least 25% annually, while MasterCard and Intercontinental Exchange grew above 20%”
Mastercard Incorporated (NYSE:MA) is in the 8th position on our list of 30 Most Popular Stocks Among Hedge Funds as per our research. As per our database, 136 hedge fund portfolios held Mastercard Incorporated (NYSE:MA) at the end of the first quarter, down from 144 in the previous quarter.
We released another article on Mastercard Incorporated (NYSE:MA) and shared another hedge fund’s views about the company. If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters Q2 2022 page.
Disclosure: None. This article is originally published at Insider Monkey.