Infuse Asset Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The goal of Infuse is to become the best-performing public equity fund over the next 50 years. After operating for just over two years, it was a slow beginning to the process of executing the audacious goal. However, it has enabled the firm to selectively recruit amazing partners and truly return to its core values. Since its start, the fund has outperformed the S&P, and established a strong basis for long-term compounding, and it is growing stronger every day. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Infuse Asset 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 $52.632 billion. The one-month return of Nu Holdings Ltd. (NYSE:NU) was -6.73%, and its shares gained 18.25% of their value over the last 52 weeks. On January 10, 2025, Nu Holdings Ltd. (NYSE:NU) stock closed at $10.95 per share.
Infuse Asset Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is executing on its own audacious vision of becoming one of the largest companies in the world. It surpassed 100 million customers at the beginning of Q2 and is marching towards the next 100 million. As it doubles down on gaining market share in Mexico, it continues to build out its super app in Brazil. High income clients can now book flights, shop, get a payroll loan, buy ETFs, exchange currency, get a business loan based on their personal loan limit, get a cellphone plan, and much more. Nu’s mission is to fight complexity – nothing in that mission statement revolves around banking. I don’t want to fully get caught up in the vision, but the management team has the skills to back up the story. Meanwhile, the top-line is still growing in excess of 30% and margins are encroaching on 30%, while the forward multiple is less than 20x. If we could find 10 companies of this caliber, I would be thrilled.”
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 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.
In another article, we discussed Nu Holdings Ltd. (NYSE:NU) and shared the list of stocks that will make you rich in 2025. In addition, please check out our hedge fund investor letters Q4 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.