Nu Holdings (NU stock) has seen rapid growth across Latin America, which has not been lost on one of the biggest pension funds in the U.S.
In a recent 13F form to the SEC, the California State Teachers' Retirement System (CalSTRS) disclosed that it has bought 1.1 million additional shares in NU, bringing its total to 1.4 million shares.
Calstrs, which has $352.8 billion assets under management, is the second-largest pension fund in the U.S.
Cayman Island-based Nu Holdings is the parent company of Nubank, one of the biggest fintech banks in Latin America, that focuses on underbanked customers in Brazil, Mexico and Colombia.
The company recently reported in its Q4 earnings that it added 4.5 million customers in the fourth quarter, and 20.4 million for fiscal 2024. It reached 114.2 million customers globally by December 31, which is a 22% year-over-year (YoY) increase.
The company also brought in $11.5 billion in revenue, a 58% YoY increase.
"This has been one of the strongest growth stocks across the world, and certainly within emerging markets," Zac Gill, global equity research analyst at Jennison Associates, told Barron's.
In a Q4 investor note, Josh Saltman, portfolio manager for the Baron FinTech Fund, expressed bullishness about Nu Holdings' opportunity for continued growth in the Latin American market.
"We remain confident in Nu's growth prospects as the company is addressing key pain points faced by banking customers across the region, including high fees, poor customer service, and limited access to financial products," he wrote. "We believe its superior product offering will lead to continued share gains in the large and growing Latin American market."
Despite Nu's growth trajectory, Warren Buffett recently disclosed in Berkshire Hathaway's 13F form to the SEC that he cut his stake in NU by 53.5%. Buffett still holds 40.1 million shares in NU, worth about $543 million.
Berkshire reportedly first invested $500 million in Nu Holdings as part of a private fundraising round in June 2021. The company completed its IPO in December 2021.
Could new regulatory environment lure Nu Holdings to the U.S.?
With the headlines right now being dominated by the uncertainty around President Trump's tariff policies – and the impact it's having on the markets – it can be easy to forget that another pillar of Trump's economic agenda is to focus on deregulation in the U.S.
In fact, Savita Subramanian, equity and quant strategist for Bank of America, wrote in a recent note that deregulation is a "bullish factor" that has yet to be priced into the markets, according to MarketWatch.
Nu Holdings CEO and founder David Velez told Reuters in January that the company was considering moving its home base from the Cayman Islands to the U.K.and was looking at a possible expansion of its operations into the U.S.
He cited the Trump administration's friendlier regulatory approach around digital assets as creating a more favorable environment for Nubank to enter the market.
"With the U.S. getting on board, fintech and crypto are back," Velez said. "When an administration suddenly sees fintech as being good for consumers and more competition, that makes it more attractive."
He added that "if there is a simplification of the regulatory agencies, they could make a much more interesting environment for other players to come in."
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