Marram Exits PayPal Holdings (PYPL) Due to Thesis Breakdown

Marram Exits PayPal Holdings (PYPL) Due to Thesis Breakdown

Tue, September 22, 2026 at 6:05 PM GMT+3 3 min read

• PYPL +1.92%

Marram Investment Management's second-quarter 2026 investor letter reports a +2.7% portfolio return (net of fees), resulting in a year-to-date return of +3.2%. A copy of the letter can be downloaded here. Cumulatively, since inception, the firm has achieved a +632.4% return and a +13.7% annualized return, net of fees. Positive contributions came from MLP Energy Infrastructure, Large Financials, and Biopharma, while Payment Technology investments detracted from performance. The firm emphasizes reasonable pricing and strong fundamentals, aiming for consistent returns while mitigating price volatility, addressing the challenges posed by high valuations and macroeconomic risks. Please review the Fund's top five holdings to learn more about its key selections for 2026.

In its second-quarter 2026 investor letter, Marram Investment Management highlighted PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. is a leading technology platform that provides digital payment solutions for merchants and consumers. On September 21, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) closed at $52.62 per share. Over the past month, PayPal Holdings, Inc. (NASDAQ:PYPL) declined 15.50%, but its shares are down 21.82% over the past year. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $45.01 billion, and its stock has traded within a 52-week range of $38.46 to $79.22.

Marram Investment Management stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2026 investor letter:

"PayPal Holdings, Inc. (NASDAQ:PYPL). We exited PayPal at a slight loss because our investment thesis broke when the Board abruptly fired the CEO and appointed a successor, a former HP executive with no payments, technology, or product experience. Our original thesis rested on a capable management team investing to rebuild the technology, product, and brand. When the facts changed, we acted accordingly."

PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the second quarter which was 76 in the previous quarter. While we acknowledge the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and noted its recent job cuts in India as part of multi-year restructuring plan to simplify operations, reduce costs and improve efficiency to strengthen profitability. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.