Baupost Group Bets Big on Visa Over Mastercard
Seth Klarman's Baupost Group recently bought $212 million in Visa shares during the first quarter of 2026, according to a 13F filing. This stake represented about 4.14% of the disclosed portfolio, which is a significant investment for a value investor known for his discipline and patience.
Klarman's decision to invest in Visa instead of Mastercard is notable, as Mastercard already sits in almost every diversified portfolio. The two companies have similar economics and margins, but Visa trades at a cheaper forward P/E multiple, with a trailing P/E near 31x and a forward P/E around 24x compared to Mastercard's trailing P/E near 31x and a forward P/E around 29x.
Visa has also been early in stablecoin settlement infrastructure, which could be an important factor if card-network margins compress over the next decade. While elite managers are split on the two companies, with Soros Fund Management opening a new Mastercard position, Klarman's commitment to Visa is a defensible template for investors.