Top 5 Stock Picks of Jacob Rothschild’s RIT Capital Partners

In this article, we discuss the top 5 stock picks of Jacob Rothschild’s RIT Capital Partners. If you want to see more of the hedge fund’s top stocks, click Top 11 Stock Picks of Jacob Rothschild’s RIT Capital Partners. 

5. Visa Inc. (NYSE:V)

RIT Capital Partners’ Stake Value: $16,251,000

Percentage of RIT Capital Partners’ 13F Portfolio: 5.75%

Number of Hedge Fund Holders: 142

Visa Inc. (NYSE:V) is a California-based multinational financial services company that offers online payment solutions. Jacob Rothschild’s RIT Capital Partners held 75,000 Visa Inc. (NYSE:V) shares, worth $16.25 million, representing 5.75% of the total 13F portfolio. 

On April 26, Visa Inc. (NYSE:V) reported its financial results for the first fiscal quarter of 2022. The company announced earnings per share of $1.79, above consensus by $0.14. Revenue for the period climbed 25.5% year-over-year to $7.19 billion, topping market estimates by $366.88 million. 

According to Insider Monkey’s Q4 data, 142 hedge funds held long positions in Visa Inc. (NYSE:V), with collective stakes exceeding $29 billion. Chris Hohn’s TCI Fund Management is the biggest shareholder of the company, with a position worth $5 billion. 

Piper Sandler analyst Christopher Donat on April 29 downgraded Visa Inc. (NYSE:V) to Neutral from Overweight with a price target of $239, down from $283. The analyst cited macro pressures, especially in Europe, for the downgrade. The analyst sees a European recession in 2023, which would impact payment transactions that drive revenue for Visa Inc. (NYSE:V). 

Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American re-engaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparalleled scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”