Jackson Square Partners Takes a Leap with $6 Million Shift4 Payments Stake

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In a spirited flurry of financial maneuvering, Jackson Square Partners, LLC has waded into the currents of payment processing by snatching up a fresh position in Shift4 Payments (FOUR +0.63%). They’ve amassed a hearty 74,100 shares, ringing in at approximately $5.74 million, according to a filing with the SEC on November 5, 2025. It’s akin to discovering a new favorite café that you never knew existed, tucked away in a side street of the bustling market.

What Happened?

This revelation was disclosed in the quarterly feasting on numbers that funds must present to the U.S. Securities and Exchange Commission (SEC). Shift4 Payments, which had been absent from the menu before, has now made a rather grand entry, and it’s hard not to raise a curious eyebrow at this bold move.

As of September 30, 2025, Jackson Square’s new acquisition accounted for a noteworthy morsel-2.32%-of their 13F reportable assets under management. Quite the addition to their investment buffet!

What Else to Know

In the wake of this new entanglement, let’s feast our eyes on Jackson Square’s top five holdings:

  1. Nvidia (NVDA 1.71%): $19.22 million (7.77% of AUM)
  2. Microsoft (MSFT 1.39%): $18.05 million (7.3% of AUM)
  3. Alphabet (GOOGL +2.44%): $14.25 million (5.76% of AUM)
  4. AAON (AAON +3.87%): $12.50 million (5.05% of AUM)
  5. CyberArk Software (CYBR 0.43%): $12.10 million (4.89% of AUM)

Fast-forward to November 4, 2025, where the shares were turning over at $66.74-a 26% drop from the prior year’s values, trailing the S&P 500 by an astonishing 45 percentage points like a turtle in a shoe race.

Company Overview

Metric Value
Price (as of market close 2025-11-04) $66.74
Market Capitalization $6.09 billion
Revenue (TTM) $3.61 billion
Net Income (TTM) $220.50 million

Company Snapshot

Shift4 Payments:

  • Offers a delightful array of integrated payment processing solutions, embracing the thrill of omni-channel card acceptance, proprietary gateways, POS solutions, eCommerce tools, and business intelligence software.
  • Serves a diverse clientele spanning hospitality, retail, eCommerce, stadiums, and entertainment venues across the grand expanse of the United States.
  • Operates a technology platform that supports secure and scalable transactions akin to a reliable steamboat navigating the choppy waters of commerce.

Shift4 Payments, Inc. positions itself as a tech-savvy provider of integrated payment solutions, fueling a myriad of businesses with its robust security and seamless transaction capabilities. They blend proprietary software with a dash of technological wizardry, leaving no stone unturned in their quest for efficiency and scalability.

With a resolute focus on innovation, Shift4 aspires to elevate customer experiences while providing operational insights, much like a gracious host at a dinner party, ensuring everyone feels welcome and well-informed.

The Foolish Take

Now, where do we begin with Jackson Square Partners’ latest acquisition? It’s splendid for investors on several fronts.

To start, Shift4 Payments has swiftly become a significant holding for Jackson Square, tipping the scales at 2.3% of their portfolio. It’s not just a fleeting dalliance; they’ve committed.

The timing of this investment is equally intriguing, especially with the stock hovering around 50% below its all-time high-a tantalizing notion for those with an appetite for “buying the dip.” The prospect of snagging a growth story at a value price feels almost like stumbling upon a rare vintage in an unassuming corner shop.

Trading near its lowest valuation at 16 times free cash flow (FCF) and 12 times forward earnings-with sales recently climbing by 17%-Shift4 is enticingly positioned. Yet, we mustn’t turn a blind eye to the formidable competition they face in the payments industry. It’s like navigating a bustling bazaar where every vendor claims to have the best deal.

Going toe-to-toe with rivals, such as Toast (TOST +9.48%), particularly in the restaurant sector, means this isn’t a one-horse race. While Toast may be trotting ahead slightly faster, their FCF valuation sits at a dizzying 46 times, nearly thrice that of Shift4. Shift4’s more palatable valuation, coupled with its impressive sales base across varied sectors like stadiums and hospitality, certainly merits consideration as a dip-worthy investment.

As the investment landscape blooms like a Mediterranean garden, investors might find themselves pondering the intriguing question of what caught Jackson Square Partners’ eye in the first place.

Glossary

13F reportable assets under management: The total value of securities a fund must disclose quarterly to the SEC in Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held in a portfolio.
Omni-channel: Integration of multiple sales and payment channels (online, in-store, mobile) for a seamless customer experience.
Proprietary gateways: Custom-built systems for securely processing electronic payment transactions.
POS solutions: Point-of-sale systems that process transactions and manage sales data at retail locations.
Business intelligence software: Tools that analyze data to help businesses make informed decisions and improve performance.
Vertical integration: A company’s ownership or control of multiple stages of its supply chain or production process.
TTM: The 12-month period ending with the most recent quarterly report.

So, keep your binoculars handy, dear investors, as the ever-evolving landscape of payments beckons with both excitement and uncertainty. 🌍

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2025-11-06 07:24