Pernas Research Views Paysafe Limited (PSFE) as a Potential Multi-Bagger Going Into 2026

Pernas Research LLC, which manages assets in the “Pernas Portfolio,” released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Portfolio returned 4.8% in Q4 compared to the S&P 500’s 2.7% return. Furthermore, the Portfolio significantly outperformed the S&P 500 in 2025, returning 54.3%. 2025 was a volatile year for Pernas Research, beginning with the California fires, followed by a sharp market reaction to Trump's “Liberation Day” announcement, which left the portfolio down 22%. However, as market conditions improved and AI momentum grew, the portfolio adjusted its strategy, resulting in significant alpha from stock selection. In addition, please check the Portfolio’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Pernas Research highlighted stocks like Paysafe Limited (NYSE:PSFE). Paysafe Limited (NYSE:PSFE) is a payment solutions provider that operates in the Merchant Solutions and Digital Wallets segments. Paysafe Limited (NYSE:PSFE) shares traded between $6.43 and $24.11 over the past 52 weeks. On January 28, 2026, Paysafe Limited (NYSE:PSFE) stock closed at $6.92 per share. One-month return of Paysafe Limited (NYSE:PSFE) was -14.46%. Paysafe Limited (NYSE:PSFE) has a market capitalization of $407.219 million.

Pernas Research stated the following regarding Paysafe Limited (NYSE:PSFE) in its fourth quarter 2025 investor letter:

"Paysafe Limited (NYSE:PSFE) is down roughly 60% since we initiated the position in February of last year, and in hindsight we were slightly aggressive with the initial sizing given the high leverage in the name. Although a relatively small error, this is a lesson we have had to relearn. Overly leveraged positions are always difficult to size. It’s important to size initially smaller than one would like and be prepared to add if there is a large selloff (provided the thesis is intact and p(default) has not increased), and be further prepared to add again. Investing is difficult, and when you choose to invest in leveraged names it becomes ten times more difficult. We still view Paysafe as a potential multi-bagger going into 2026, which explains its continued positioning in the portfolio."

Paysafe Limited (NYSE:PSFE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 16 hedge fund portfolios held Paysafe Limited (NYSE:PSFE) at the end of the third quarter, compared to 20 in the previous quarter. While we acknowledge the potential of Paysafe Limited (NYSE:PSFE) 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 Paysafe Limited (NYSE:PSFE) and shared the list of oversold software stocks to buy. 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.