White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The White Falcon portfolio returned 5.6% (net of fees) in Q4 2025, resulting in a yearly return of 28.4%. The year has been notable, particularly with the “tariff tantrum” in April 2025 that saw markets drop nearly 20%, now fading into the past. Overall, the portfolio performed well, with only a few companies affecting a solid majority of positive results. The White Falcon portfolio consists of 20-25 carefully selected stocks that align with its quality and valuation standards, focusing on generating positive absolute returns adjusted for risk over a full market cycle. The portfolio’s preferred metric, the rolling three-year annualized return, currently stands at 25.9% CAGR, outpacing most major indices, including the S&P 500. As a long-term compounder, the firm is optimistic about its long-term prospects. The firm anticipates a significant increase in leverage associated with AI and expects major private companies to go public through IPOs. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, White Falcon Capital Management highlighted stocks like Nu Holdings Ltd. (NYSE:NU). Nu Holdings Ltd. (NYSE:NU) is a leading digital banking platform headquartered in São Paulo, Brazil. On March 05, 2026, Nu Holdings Ltd. (NYSE:NU) stock closed at $14.82 per share. One-month return of Nu Holdings Ltd. (NYSE:NU) was -14.83%, and its shares gained 37.10% over the past 52 weeks. Nu Holdings Ltd. (NYSE:NU) has a market capitalization of $71.961 billion.
White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its fourth quarter 2025 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is a perfect hold in some ways. It’s growing fast, earning great returns, and still trades at a pretty reasonable valuation. Most companies growing 30% with 30% ROEs trade at huge multiples. Nu trades at a high teens multiple of earnings. The market still treats Nu like a regular bank in Brazil and not a high‑quality tech-enabled compounder. With Nu’s expansion in Mexico and Colombia, growing revenue per user in Brazil, and operating leverage, Nu is likely to keep growing earnings at 30+% for many years to come and its stock price will likely follow.”
Nu Holdings Ltd. (NYSE:NU) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 108 hedge fund portfolios held Nu Holdings Ltd. (NYSE:NU) at the end of the fourth quarter, up from 99 in the previous quarter. While we acknowledge the risk and potential of Nu Holdings Ltd. (NYSE:NU) 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 Nu Holdings Ltd. (NYSE:NU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Nu Holdings Ltd. (NYSE:NU) and shared a list of undervalued stocks under $30 to buy. In addition, please check out our hedge fund investor letters Q4 2025 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.
