Top 5 Stock Picks of Teresa Barger’s Cartica Management

3. XP Inc. (NASDAQ:XP)

Cartica Management’s Stake Value: $38,851,000
Percentage of Cartica Management’s Portfolio: 11.13%
Number of Hedge Fund Holders: 31

XP Inc. (NASDAQ:XP) is a Brazilian asset management company offering fixed income, equities, investment funds, private pension packages, wealth management, and other financial services. On June 7, Thiago Batista of UBS upgraded XP Inc. (NASDAQ:XP) to Buy while cutting his price objective from $37 to $31. According to a research note from Batista to investors, XP Inc. (NASDAQ:XP) shares fell 20% year-to-date, which made its value appealing and less expensive than comparable high-growth Brazilian stocks.

Cartica Management also strengthened its position in XP Inc. (NASDAQ:XP) by purchasing an additional 85,000 shares. This made its stake in XP Inc. (NASDAQ:XP) total 1.29 million shares worth $38.85 million. The stock accounted for 11.13% of the fund’s total 13F portfolio.

Among the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global was the leading shareholder of XP Inc. (NASDAQ:XP), with 9.44 million shares worth more than $284.24 million. At the end of the first quarter, 31 hedge funds in Insider Monkey’s database held stakes in XP Inc. (NASDAQ:XP), a decrease compared to 33 funds in the preceding quarter.

Here is what Harding Loevner has to say about XP Inc. (NASDAQ:XP) 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.”