We recently published a list of Top 10 Stocks to Buy According to XN Exponent Advisors LLC. In this article, we are going to take a look at where TransUnion (NYSE:TRU) stands against other top stocks to buy according to XN Exponent Advisors LLC.
Established in 2018 by Gaurav Kapadia, XN Exponent Advisors LLC is based in New York and manages approximately $2.53 billion in 13F securities according to its latest filing for the fourth quarter of 2024. With just 13 clients, the hedge fund maintains a concentrated portfolio, with its top ten holdings accounting for 69.02% of its total assets. XN employs a global investment strategy that spans both public and private markets, focusing on generating high risk-adjusted returns. The firm targets sectors where it has deep expertise while deliberately avoiding balance sheet-heavy industries such as financials, healthcare, energy, and materials.
The firm primarily invests in North America and Western Europe but remains open to opportunities in other regions that align with its strategic goals. XN’s investment approach is built around a long/short strategy, where it seeks to capitalize on market inefficiencies by purchasing undervalued assets and shorting overvalued ones. This method hinges on the firm’s ability to assess market opportunities accurately, though there is no guarantee of success. Market disruptions pose a significant risk, as they can result in substantial losses and may force XN to close out client positions to mitigate damage.
A key feature of XN’s approach is its flexibility. Unlike traditional investment firms bound by rigid diversification or leverage policies, XN can trade across a wide range of securities, issuers, countries, and sectors to align with its investment objectives. This adaptability enables the firm to respond quickly to shifting market conditions, reallocating client assets as necessary. While this strategy offers significant potential for high returns, it also carries inherent risks, particularly in volatile market environments. However, XN’s focus on specialized knowledge and strategic positioning aims to maximize opportunities while managing downside exposure.
Founder and Chief Executive Officer of XN, Gaurav Kapadia has nearly two decades of experience in public and private markets and has built a reputation as a visionary investor and business leader. Before launching XN, a firm whose name reflects the power of long-term compounding, Kapadia was the Co-Founder and Co-Managing Partner of Soroban Capital Partners, a globally recognized investment firm. Prior to that, he served as a Partner at TPG-Axon Capital, working in both New York and London. His extensive expertise in finance and investing is rooted in his academic background; he earned a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania in 1999.
Beyond his financial career, Kapadia is deeply committed to philanthropy and civic engagement, particularly in the arts, humanities, education, and social equity. In September 2023, the Mellon Foundation announced his election to its Board of Trustees, recognizing his dedication to supporting cultural and educational initiatives. He has been a strong proponent of the transformative power of art and the humanities, emphasizing their role in fostering positive societal change. Under the leadership of Mellon Foundation President Elizabeth Alexander, Kapadia expressed his excitement to contribute to the organization’s mission, citing its precision and ambitious vision as key reasons for his involvement.
Kapadia also serves on the Boards of Trustees for several influential institutions, including The Whitney Museum of American Art, The Trust for Governors Island, Uncommon Schools, and The Institute for Constitutional Advocacy and Protection at Georgetown University Law Center. His advocacy for education, civic engagement, and equality underscores his commitment to creating meaningful opportunities for underserved communities. Through his leadership in both finance and philanthropy, Kapadia continues to bridge the worlds of business and social impact, demonstrating how strategic investments—whether in financial markets or cultural institutions—can drive long-term positive change.
Our Methodology
The stocks discussed below were picked from XN Exponent Advisors LLC’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A side profile of a consumer within a store handing a credit card to a cashier, reflecting the debt collection services of the company.
TransUnion (NYSE:TRU)
Number of Hedge Fund Holders as of Q4: 58
XN Exponent Advisors LLC’s Equity Stake: $176.87 Million
TransUnion (NYSE:TRU), a leading consumer credit reporting agency, collects and analyzes credit data for over one billion individuals across more than 30 countries. Headquartered in Chicago, the company provides credit reports, fraud protection, and data analytics services to businesses and consumers. As part of its compliance with U.S. law, TransUnion (NYSE:TRU) offers consumers one free credit report annually. Beyond traditional credit reporting, the company has expanded into advanced data analytics with AI-driven solutions like TLOxp, which enhances fraud detection and risk management.
For the fourth quarter of 2024, TransUnion (NYSE:TRU) reported strong financial performance, with total revenue rising 9% year-over-year to $1.04 billion. Net income for the quarter reached $66 million, a significant increase from $6 million in the previous year. Adjusted net income grew to $192 million, while adjusted earnings per share (EPS) rose to $0.97 from $0.80 in the prior year. The company also saw a 16% increase in adjusted EBITDA, reaching $378 million. CEO Chris Cartwright attributed this growth to steady demand in the U.S. market, strong performance in financial services and insurance, and double-digit growth in international markets, particularly in India, Asia Pacific, and Latin America.
For the full year 2024, TransUnion (NYSE:TRU) reported a total revenue of $4.18 billion, reflecting a 9% increase. The U.S. segment generated $792 million in fourth-quarter revenue, driven by 21% growth in financial services and 4% growth in emerging verticals. International revenue rose 11% to $245 million, with notable gains in India, Asia Pacific, and Latin America. With strong cash flow and a growing global presence, TransUnion remains well-positioned for sustained growth in the coming years.
TransUnion (NYSE:TRU)’s Board of Directors has declared a cash dividend of $0.115 per share for the fourth quarter of 2024. The dividend will be payable on March 14, 2025, to shareholders of record on February 27, 2025.
Overall, TRU ranks 4th on our list of top stocks to buy according to XN Exponent Advisors LLC. While we acknowledge the potential for TRU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TRU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
