Time to Consider Selling Your Paysafe (PSFE) Position?

Third Point Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A portfolio return of -5.3% was delivered by the flagship Offshore Fund for the final quarter of 2021, bringing its year-to-date returns to 22.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Third Point Management, in its Q4 2021 investor letter, mentioned Paysafe Limited (NYSE: PSFE) and discussed its stance on the firm. Paysafe Limited is a United Kingdom-based multinational online payments company with a $2.3 billion market capitalization. PSFE delivered a -18.41% return since the beginning of the year, while its 12-month returns are down by -81.66%. The stock closed at $3.19 per share on February 18, 2022.

Here is what Third Point Management has to say about Paysafe Limited in its Q4 2021 investor letter:

“The top five losers for the quarter (includes) Paysafe Ltd. The fourth quarter marked the beginning of a market rotation from growth to value that accelerated into January of 2022. One of the most stinging losses for the quarter was our investment in Paysafe Ltd, which was down 49% in Q4 and 74% for the year due to its failure to execute the plan articulated in its 2020 IPO (via a SPAC transaction, in which we participated.) We exited the position in its entirety following the company’s Q3 earnings report, and the shares have languished since then.”

Photo by Sharon McCutcheon on Unsplash

Our calculations show that Paysafe Limited (NYSE: PSFE) was not able to obtain a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. PSFE was in 279 hedge fund portfolios at the end of the third quarter of 2021, compared to 242 funds in the previous quarter. Paysafe Limited (NYSE: PSFE) delivered a -16.99% return in the past 3 months.

In November 2021, we published an article that includes PSFE in the 10 Reddit Stocks that Flopped in 2021. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.