10 Best Aggressive Growth Stocks to Buy According to Hedge Funds

6. Nu Holdings Ltd. (NYSE:NU)

Revenue Growth: 65%

Number of Hedge Fund Investors In Q2 2024: 59

Nu Holdings Ltd. (NYSE:NU) is a Brazilian bank with a presence in the US, Germany, and other countries. It is one of the most interesting banks in the world due to the fact that it operates through a digital banking model and its primary markets are the high growth, low penetration regions of Brazil, Mexico, Colombia, and others. These countries typically see customers struggle with banking due to large incumbents, and Nu Holdings Ltd. (NYSE:NU) also benefits from low operating costs because of its digital banking model. The lower costs enable the bank to compete effectively against Brazilian banking giants who struggle with high overhead costs. Another key advantage for the firm is its data driven business which allows Nu Holdings Ltd. (NYSE:NU) to identify customer trends and preferences and market additional products to grow revenue. These advantages mean that Nu Holdings Ltd. (NYSE:NU) can only further grow in the future provided that management does not move its eye from the prize.

Baron Funds mentioned Nu Holdings Ltd. (NYSE:NU) in its Q2 2024 investor letter. Here is what the firm said:

“Nu Holdings Ltd. is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.”