Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Core Equity” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Aristotle Atlantic’s Core Equity Composite posted a total return of -6.79% gross of fees (-6.89% net of fees), underperforming the S&P 500 Index, which recorded a total return of -4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Aristotle Capital Management Core Equity Fund mentioned Paypal Holdings, Inc. (NASDAQ:PYPL) and explained its insights for the company. Founded in 1998, Paypal Holdings, Inc. (NASDAQ:PYPL) is a San Jose, California-based financial technology company with a $98.6 billion market capitalization. Paypal Holdings, Inc. (NASDAQ:PYPL) delivered a -54.81% return since the beginning of the year, while its 12-month returns are down by -67.23%. The stock closed at $85.21 per share on May 27, 2022.
Here is what Aristotle Capital Management Small Cap Equity has to say about Paypal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:
“We sold our position in PayPal due to the uncertain twelve-month horizon the company faces due to market headwinds from inflation and supply chain issues impacting e-commerce. On a more fundamental level, we sold due to the seismic shift in strategy and our disappointment with management credibility. The company reported weak 2022 guidance, and a strategic shift announced on the fourth quarter 2021 earnings call. The global payments space is undergoing a massive transition due to new technology introduced by both private and new Initial Public Offerings prospects, and we believe that the significant amount of private capital underwriting the new technology will continue to pressure incumbent players, even those as large and seemingly in the sweet spot of e-commerce payments, as PayPal currently is.”
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Our calculations show that Paypal Holdings, Inc. (NASDAQ:PYPL) ranks 18th on our list of the 30 Most Popular Stocks Among Hedge Funds. Paypal Holdings, Inc. (NASDAQ:PYPL) was in 100 hedge fund portfolios at the end of the first quarter of 2022, compared to 110 funds in the previous quarter. Paypal Holdings, Inc. (NASDAQ:PYPL) delivered a -23.87% return in the past 3 months.
Just recently, we also published an article that includes Paypal Holdings, Inc. (NASDAQ:PYPL) in the Tech Selloff: Hedge Funds are Dumping These 5 Stocks in 2022. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.