U.S. Markets closed
  • S&P 500

    +58.48 (+1.44%)
  • Dow 30

    +415.12 (+1.26%)
  • Nasdaq

    +208.43 (+1.74%)
  • Russell 2000

    +34.10 (+1.93%)
  • Crude Oil

    +1.33 (+1.79%)
  • Gold

    -10.70 (-0.54%)
  • Silver

    +0.25 (+1.03%)

    -0.0062 (-0.5640%)
  • 10-Yr Bond

    -0.0570 (-1.61%)
  • Vix

    -0.32 (-1.68%)

    -0.0058 (-0.4686%)

    +0.1080 (+0.0814%)

    -103.00 (-0.36%)
  • CMC Crypto 200

    +7.58 (+1.23%)
  • FTSE 100

    +11.31 (+0.15%)
  • Nikkei 225

    +258.55 (+0.93%)

Should You Now Consider Acquiring Visa (V) Shares?

Distillate Capital, an investment management firm, released its fourth quarter 2022 investor letter, a copy of the same can be downloaded here. At the end of the fourth quarter, Distillate’s U.S. FSV strategy declined 10.58% on a total return basis net of fees compared to a decline of 18.11% for the S&P 500 benchmark. Better relative performance for Distillate’s SMID QV strategy continued into 2022 with a decline of 8.64% on a total return net-of-fee basis, significantly ahead of a comparable decline of 20.49% for the Russell 2000 ETF and -14.67% for the Russell 2000 Value ETF. On the other hand, Distillate’s Intl. FSV strategy again lagged its MSCI ACWI Ex-US benchmark in 2022, while the Distillate’s U.S. FSV strategy’s free cash flow to market cap yield valuation of 7.2% compares very favorably to 5.1% for the same measure for the S&P 500. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, Distillate Capital mentioned Visa Inc. (NYSE:V) and explained its insights for the company. Founded in 1958, Visa Inc. (NYSE:V) is a San Francisco, California-based multinational financial services corporation with a $486.2 billion market capitalization. Visa Inc. (NYSE:V) delivered an 11.33% return since the beginning of the year, while its 12-month returns are up by 1.47%. The stock closed at $229.44 per share on February 6, 2023.

Here is what Distillate Capital has to say about Visa Inc. (NYSE:V) in its Q3 2022 investor letter:

"The largest sector change in the rebalance was a six-percentage point increase in technology. The biggest component of this increase was the introduction of a 4% weight in Apple, which is discussed further below. Offsetting this increased tech weight was a 3-percentage point decrease in industrials and a two-percentage point decline in health care. The other two largest purchases includes Visa Inc. (NYSE:V) and Abbott Labs which likewise saw their valuations improve as their estimated free cash flows held up or improved while their enterprise values declined."

Visa Inc (NYSE:V), Visa Electron, Card, MasterCard, Cards, Credit, bank
Visa Inc (NYSE:V), Visa Electron, Card, MasterCard, Cards, Credit, bank

JMiks / Shutterstock.com

Our calculations show that Visa Inc. (NYSE:V) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. Visa Inc. (NYSE:V) was in 165 hedge fund portfolios at the end of the second quarter of 2022, compared to 166 funds in the previous quarter. Visa Inc. (NYSE:V) delivered a 14.62% return in the past 3 months.

In January 2023, we also shared another hedge fund’s views on Visa Inc. (NYSE:V) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.


Suggested Articles:

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