Corpay (CPAY) Slipped on Investors' Concerns

Pelican Bay Capital Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the same can be downloaded here. PBCM Concentrated Value Strategy returned 7.8% in the quarter, compared to a 5.3% return for the Russell 1000 Value Index. YTD, the fund returned 11.2% compared to 11.6% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, PBCM Concentrated Value Strategy highlighted stocks such as Corpay, Inc. (NYSE:CPAY). Corpay, Inc. (NYSE:CPAY) is a payment company that helps businesses and consumers manage vehicle-related expenses. The one-month return of Corpay, Inc. (NYSE:CPAY) was -2.12%, and its shares lost 25.89% of their value over the last 52 weeks. On November 7, 2025, Corpay, Inc. (NYSE:CPAY) stock closed at $276.53 per share, with a market capitalization of $19.527 billion.

PBCM Concentrated Value Strategy stated the following regarding Corpay, Inc. (NYSE:CPAY) in its third quarter 2025 investor letter:

"Corpay, Inc. (NYSE:CPAY) declined amid investor concerns that labor market weakness is weighing on its corporate payments business. CPAY also operates a large truck-fleet fuel card business, which is under pressure from the significant decline in U.S. freight volumes. However, this industry weakness provided us an opportunity to invest in the segment leader, which we discuss below."

Corpay, Inc. (NYSE:CPAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Corpay, Inc. (NYSE:CPAY) at the end of the second quarter, up from 40 in the previous quarter. In the third quarter of 2025, Corpay, Inc. (NYSE:CPAY) reported a 14% growth in both revenue and cash EPS. While we acknowledge the potential of Corpay, Inc. (NYSE:CPAY) 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 Corpay, Inc. (NYSE:CPAY) and shared ClearBridge Mid Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 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.