White Falcon Capital Management, an investment fund manager, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. It was a good quarter for the fund fueled by precious metal royalty companies. In the third quarter, the fund returned 6.0% compared to a 4.5% return for the S&P 500 (CAD), 4.9% for the MSCI All Country (CAD), and 10.6% 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 third quarter 2024 investor letter. Nu Holdings Ltd. (NYSE:NU) is a digital banking platform provider, with a market capitalization of $68.679 billion. The one-month return of Nu Holdings Ltd. (NYSE:NU) was 9.05%, and its shares gained 72.56% of their value over the last 52 weeks. On November 1, 2024, Nu Holdings Ltd. (NYSE:NU) stock closed at $14.34 per share.
White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q3 2024 investor letter:
“We sold half of our position in Nu Holdings Ltd. (NYSE:NU), which has been one of our highest IRR positions. We initiated a position in NU in the fall of 2022 at $4 per share and it is now trading at $14 per share. As has been communicated by us many times, good business and good managements tend to surprise to the upside. There is an option value in good quality businesses that mediocre businesses at cheap valuation just do not provide! That has been the case with NU where the actual business performance far exceeded our expectations. While we still believe NU has the potential to do well, the current risk-reward profile suggests that trimming our position might be a prudent move.”
A close-up of a busy executive’s hand tapping the screen of a digital device, signifying the development of a digital retail banking solution.
Nu Holdings Ltd. (NYSE:NU) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Nu Holdings Ltd. (NYSE:NU) at the end of the second quarter which was 63 in the previous quarter. 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.
In another article, we discussed Nu Holdings Ltd. (NYSE:NU) and shared the list of most undervalued blockchain stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.