Is Buying StoneCo Ltd. (STNE) Shares a Good Choice?

Nordstern Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In its letter, the fund talked about the supply-chain disruptions, anti-globalization, China-US decoupling, COVID-19, and the lockdowns, pointing out that these are all possible explanations contributing to the recent increase in prices for goods and services. The fund also talked about some stocks of which they see some great potential in the long term. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Nordstern Capital, in its Q4 2021 investor letter, mentioned StoneCo Ltd. (NASDAQ: STNE) and discussed its stance on the firm. StoneCo Ltd. is a Cayman Islands-based financial technology solutions company with a $3.8 billion market capitalization. STNE delivered a -26.93% return since the beginning of the year, while its 12-month returns are down by -86.91%. The stock closed at $12.32 per share on February 16, 2022.

Here is what Nordstern Capital has to say about StoneCo Ltd. in its Q4 2021 investor letter:

“StoneCo Ltd (Stone) was a darling of the 2020 stock market, but in 2021 the stock price dropped more than 80% from $95.12 to $16.86 at year-end. Everybody (and their tax-loss selling mother) hated it. The Brazilian fintech Stone is stewarded by André Street, one of the youngest billionaire founders, and has earned the trust of long-term owners such as the Walton family and Warren Buffett. Its clients are primarily SMBs and I believe Stone has Brazil’s best boots-on-the-ground hyper-local hyper-energized sales force…” (Click here to see the full text)

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Our calculations show that StoneCo Ltd. (NASDAQ: STNE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. STNE was in 37 hedge fund portfolios at the end of the third quarter of 2021, compared to 44 funds in the previous quarter. StoneCo Ltd. (NASDAQ: STNE) delivered a -40.48% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on STNE in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.