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White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. It was a good year for the fund on an absolute basis. However, the fund was unable to keep up with a fast charging market despite outperforming the popular indices for two years. It didn't witness any notable increases, and didn't suffer any large losses. In the quarter, the fund returned 5.5% compared to an 8.9% return for the S&P 500 (CAD), 5.0% for the MSCI All Country (CAD), and 3.8% for the S&P TSX TR. In addition, please check the fund’s top five holdings to know its best picks in 2024.
White Falcon Capital Management highlighted stocks like Nu Holdings Ltd. (NYSE:NU), in the fourth quarter 2024 investor letter. Nu Holdings Ltd. (NYSE:NU) is a digital banking platform provider, with a market capitalization of $55.42 billion. The one-month return of Nu Holdings Ltd. (NYSE:NU) was 11.08%, and its shares gained 25.74% of their value over the last 52 weeks. On January 17, 2025, Nu Holdings Ltd. (NYSE:NU) stock closed at $11.53 per share.
White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter:
"Nu Holdings Ltd. (NYSE:NU) has recently corrected due to Brazil's macroeconomic struggles. Nu reports its earnings in U.S. dollars but generates revenue in Brazilian reais, Mexican pesos, and Colombian pesos. The sharp depreciation of these emerging market currencies, coupled with ongoing macroeconomic uncertainty, is making investors uncomfortable. Our due diligence suggests that Nu remains unaffected. Importantly, we continue to believe that Nu is a rare business with a combination of a large market opportunity, a strong moat driven by its superior cost structure, and a brilliant management team."
A person holding their smartphone, utilizing the company's digital banking services from anywhere.
Nu Holdings Ltd. (NYSE:NU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Nu Holdings Ltd. (NYSE:NU) at the end of the third quarter which was 59 in the previous quarter. Nu Holdings Ltd.’s (NYSE:NU) revenue surged 56% year-over-year to $2.9 billion in the third quarter driven by effective cross-selling and up-selling strategies, as well as the launch of new products. While we acknowledge the potential of Nu Holdings Ltd. (NYSE:NU) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.