Should You Now Consider Selling Your XP Inc. (XP) Shares?

Harding Loevner, an investment management firm, published its “Emerging Markets Equity Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of -2.38% was recorded by the fund for the fourth quarter of 2021, trailing its Benchmark, the MSCI Emerging Markets Index, which returned -1.24% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Harding Loevner Emerging Markets Equity Fund mentioned  XP Inc. (NASDAQ: XP) and discussed its stance on the firm. XP Inc. is a State of São Paulo, Brazil-based financial services company with an $18.0 billion market capitalization. XP delivered a 12.53% return since the beginning of the year, while its 12-month returns are down by -26.70%. The stock closed at $32.34 per share on February 28, 2022.

Here is what Harding Loevner Emerging Markets Equity Fund has to say about XP Inc. in its Q4 2021 investor letter:

“Shares of another new Brazilian holding, XP, the country’s premier online investment platform, also sold off as tough economic conditions outweighed management’s optimism about prospective growth from new business lines in pensions, credit cards, and loans. Performance was helped by stock selection and our underweight in China.”

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Our calculations show that XP Inc. (NASDAQ: XP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. XP was in 33 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 28 funds in the previous quarter. XP Inc. (NASDAQ: XP) delivered an 8.38% return in the past 3 months.

In February 2022, we published an article that includes XP in the 5 New Stock Picks of Ken Fisher. You can find more than 100 investor 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.