Top 5 Stock Picks of John Overdeck and David Siegel’s Two Sigma Advisors

4. Visa Inc. (NYSE:V)

Two Sigma Advisors’ Stake Value: $498,823,000

Percentage of Two Sigma Advisors’ 13F Portfolio: 1.29%

Number of Hedge Fund Holders: 143

Visa Inc. (NYSE:V), a multinational financial technology company facilitating the electronic transfer of funds, posted its Q3 results on October 26. The EPS came in at $1.62, beating estimates by $0.08. The $6.56 billion revenue gained almost 29% year-over-year, outperforming estimated revenue by $45.89 million. 

Two Sigma Advisors holds a $498.8 million position in Visa Inc. (NYSE:V) as of Q3, which accounts for 1.29% of the fund’s total 13F securities. Citing attractive stock valuation, UBS analyst Rayna Kumar assumed coverage of Visa Inc. (NYSE:V) with a Buy rating and a $275 price target on November 17. 

Insider Monkey’s Q3 database tracks the movement of 867 elite hedge funds, of which a total of 143 funds were bullish on Visa Inc. (NYSE:V) at the end of September, down from 162 funds holding stakes in the company in the preceding quarter. The leading Visa Inc. (NYSE:V) stakeholder is TCI Fund Management, with a $4.44 billion stake in the company. 

Here is what Polen Capital has to say about Visa Inc. (NYSE:V) in its Q3 2021 investor letter:

“Visa Inc. faced pressure as some believe these “old payment infrastructure” businesses will be disrupted by newer fintech companies using blockchain, buy now, pay later (BNPL), or other innovations to provide better/cheaper payment services. However, we believe that some of these technologies have meaningful limitations which could benefit existing payment networks. For example, BNPL transactions are often funded with cards and turn a one-time transaction into many smaller ones with more transaction fees for Visa. Just like with regulation, we continually monitor for competition and technological disruption. As of now, we do not see a significant risk in the foreseeable future to this company.”