Marram Investment Management, an outsourced long-term investment solutions provider, released its fourth-quarter investor letter. A copy of the letter can be downloaded here. The Portfolio returned +4.0% (net) in 2025 and a cumulative return of 609.7% since its inception. The year reflects a notable divergence between market prices and business performance, but the firm evaluates the progress based on long-term profit metrics rather than short-term market fluctuations. Large Financials, MLP Energy Infrastructure, and Biopharma contributed positively to the performance, while Payment Technology holdings lagged the performance by 4% despite continued growth in per-share profits. The firm believes that operating leverage and appropriate capital allocation position these businesses to provide sustained free cash flow per share growth and exceptional upside potential over the long term. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Marram Investment Management highlighted stocks like Paymentus Holdings, Inc. (NYSE:PAY). Paymentus Holdings, Inc. (NYSE:PAY) is a leading cloud-based bill payment technology and solutions company that offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to non-discretionary end markets. On March 20, 2026, Paymentus Holdings, Inc. (NYSE:PAY) stock closed at $24.32 per share. One-month return of Paymentus Holdings, Inc. (NYSE:PAY) was -0.33%, and its shares lost 12.49% over the past 52 weeks. Paymentus Holdings, Inc. (NYSE:PAY) has a market capitalization of $3.06 billion.

Marram Investment Management stated the following regarding Paymentus Holdings, Inc. (NYSE:PAY) in its fourth quarter 2025 investor letter:

"The payment technology sector is currently experiencing a disconnect between operating fundamentals and share price performance. Investor fear of near-term growth deceleration has resulted in valuation compression and shareholder turnover, even as these businesses continue to compound value on a per-share basis. To illustrate this divergence, below we summarize recent operating progress alongside market performance for Paymentus Holdings, Inc. (NYSE:PAY).

Paymentus Holdings, Inc. (NYSE:PAY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Paymentus Holdings, Inc. (NYSE:PAY) at the end of the fourth quarter, up from 23 in the previous quarter. In Q4 2025, Paymentus Holdings, Inc. (NYSE:PAY) reported record revenue of $330.5 million, an increase of 28.1% year-over-year. While we acknowledge the potential of Paymentus Holdings, Inc. (NYSE:PAY) 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 Paymentus Holdings, Inc. (NYSE:PAY) and shared a list of best big tech stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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