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Is PayPal Holdings (PYPL) a Smart Long-term Buy?

Alex Smith
·3 min read

Polen Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter of 2020, the Polen Global Growth Composite Portfolio returned 9.09% gross of fees, while the MSCI All Country World Index was up 8.14%. You should check out Polen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Polen Capital highlighted a few stocks and PayPal Holdings Inc. (NASDAQ:PYPL) is one of them. PayPal Holdings Inc. (NASDAQ:PYPL) engages in the development of technology platform for digital payments. Year-to-date, PayPal Holdings Inc. (NASDAQ:PYPL) stock gained 88.5% and on October 22nd it had a closing price of $203.93. Here is what Polen Capital said:

"We continue to have high conviction in MasterCard and Visa, which we trimmed last quarter, and chose to rebalance our weights as we added to our position in PayPal. PayPal’s value proposition to merchants and consumers continues to expand in the current environment, and we believe this will have a lasting positive impact on the business. At the end of the quarter, our collective position in Visa, MasterCard, and PayPal was more than 13%, an increase in our aggregate weight from the start of the year."

Paypal PYPL Mastercard MA Visa
Paypal PYPL Mastercard MA Visa

www.BillionPhotos.com / Shutterstock.com

Earlier this week, we published an article revealing that Wedgewood Partners is bullish on PayPal Holdings Inc. (NASDAQ:PYPL) stock.

In Q2 2020, the number of bullish hedge fund positions on PayPal Holdings Inc. (NASDAQ:PYPL) stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in PayPal's growth potential. Our calculations showed that PayPal Holdings Inc. (NASDAQ:PYPL) is ranked #9 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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