RGA Investment Advisors LLC, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. The fund encouraged existing and prospective clients alike that despite the pains of the past decade, investments in high-quality and reasonably priced equities were well-timed and would be rewarded in the years to come. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
RGA Investment Advisors, in its Q4 2021 investor letter, mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) and discussed its stance on the firm. Founded in 1998, PayPal Holdings, Inc. (NASDAQ:PYPL) is a San Jose, California-based financial technology company with a $138.3 billion market capitalization, and is currently spearheaded by its CEO, Dan Schulman. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -37.02% return since the beginning of the year, while its 12-month returns are down by -51.40%. The stock closed at $118.77 per share on March 18, 2022.
Here is what RGA Investment Advisors has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2021 investor letter:
“Stocks move with far more volatility to both the upside and downside than do the businesses themselves. Great businesses often go long periods of time without moving at all in the market, and then make large moves in very sudden fashion. Some people may try to anticipate exactly when these large moves will happen, but we think that is far more akin to astrology than sound business analysis…
We have owned shares in PayPal since the company was spun off from eBay in 2015. In aggregate, price has moved upward, quite powerfully during our tenure; however, this upside was essentially achieved in two somewhat brief pulses that cover less than half of our tenure with the stock. The rest of the time, price chopped around in ranges. These ranges are periods of tension, where the fundamentals continue to chug along but the stock price must digest. Some periods of tension are fairly quiet, while others include both steep up and down moves along the way. Some end up being brief resets, others might persist for two plus years. The key underlying truth is that if the business remains sound, and in the case of PayPal, we think it is incredibly sound, the journey of rising stock prices will once again resume when the stock is ready. We are not market timers and thus cannot be sure as to when a stock might be ready, but value is inevitably the force that operates on a company’s stock and that force cannot help but exert its will over longer periods of time.
Thus, as we sit here today, a new year brings new opportunities, and the forward return profile of our portfolio looks as strong as it has been in some time.”
Image by mohamed Hassan from Pixabay
Our calculations show that PayPal Holdings, Inc. (NASDAQ:PYPL) ranks 14th on our list of the 30 Most Popular Stocks Among Hedge Funds. PayPal Holdings, Inc. (NASDAQ:PYPL) was in 110 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 123 funds in the previous quarter. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -34.98% return in the past 3 months.
Earlier this month, we also shared another hedge fund’s views on PayPal Holdings, Inc. (NASDAQ:PYPL) in another article. 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.
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