Is it a Wise Choice to Dispose Your StoneCo (STNE) Shares?

ClearBridge Investments, an investment management firm, published its “Global Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge Global Growth Strategy outperformed its MSCI ACWI benchmark. The Strategy delivered gains across eight of the nine sectors in which it was invested (out of 11 total), with the information technology (IT) and industrials sectors the primary contributors. The communication services sector was the sole detractor. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Global Growth Strategy, in its Q4 2021 investor letter, mentioned  StoneCo Ltd. (NASDAQ:STNE) and discussed its stance on the firm. Founded in 2000, StoneCo Ltd. (NASDAQ:STNE) is a Cayman Islands-based financial technology solutions company with a $3.4 billion market capitalization, and is currently spearheaded by its CEO, Thiago dos Santos Piau. StoneCo Ltd. (NASDAQ:STNE) delivered a -28.00% return since the beginning of the year, while its 12-month returns are down by -81.10%. The stock closed at $12.14 per share on April 01, 2022.

Here is what ClearBridge Investments Global Growth Strategy has to say about StoneCo Ltd. (NASDAQ:STNE) in its Q4 2021 investor letter:

“We also sold and trimmed several names in the emerging market and emerging growth areas, to manage risk and pursue growth companies with a better long-term risk/reward. These included Brazilian payments provider StoneCo. Having expected a rebound in their performance post a profit warning earlier in the year, rising interest rates in Brazil and investments in newly acquired companies increased operating costs and depressed earnings.”

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. StoneCo Ltd. (NASDAQ:STNE) was in 35 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. StoneCo Ltd. (NASDAQ:STNE) delivered a -28.00% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on StoneCo Ltd. (NASDAQ: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.