Lone Pine Capital reversed course on a payments stock in the fourth quarter and made a massive investment. The hedge fund, founded by Stephen Mandel more than two decades ago, has developed a solid long-term track record. Its fourth-quarter filing with the SEC, revealed Monday, showed more than $24 billion in equity positions. The list of top holdings for the fund had a new entrant at the end of December in Mastercard , as the company revealed it had built a stake worth $1.7 billion. Elsewhere, the fund increased its positions in several tech stocks, including Amazon , Snap , Workday and Match . Mastercard may be a new entry to the portfolio for the fourth quarter, but it is not new to Lone Pine overall. The fund reported a stake of roughly $659 million in the stock during the second quarter of 2021, but the hedge fund eliminated that position during the third quarter. Though the filing does not say exactly when or at what cost Lone Pine purchased the shares of Mastercard, the 4.8 million of shares would have been worth more than $1 billion at any point during the fourth quarter. If Lone Pine has not adjusted its position in Mastercard so far in 2022, it has proven to be a smart investment. The stock was trading at roughly $380 per share on Tuesday afternoon, which is more than 5% above where it closed out December. The fund also made a sizeable investment in Visa that was valued at just over $1 billion at the end of December. However, Lone Pine did not appear to get bullish on all payments stocks, as the fund sold the majority of its position in Block , the company formerly known as Square. Lone Pine also eliminated a few other major positions during the quarter. The fund sold all of its stock in Coupa Software and Carvana . Those positions were worth $1 billion and $646 million, respectively, at the end of the third quarter.
Mastercard credit cards
Roberto Machado Noa/ LightRocket via Getty Images
Lone Pine Capital reversed course on a payments stock in the fourth quarter and made a massive investment.