Nubank is a Brazilian neobank and the largest fintech bank in Latin America, expanding access to financial services, in part financed by IFC. The form was founded in 2013 and listed in 2022 and then experienced severe valuation changes.

Portfolio

EM Leaders is developing portfolios from three angles: alpha sources, factor attribution, and stock profiles. The three conceptual frameworks allow investors to understand how we design a robust and replicable investment process.

Alpha sources can be divided into bottom-up stock selection (blue), into cross-sectional themes and factors (red), and into top-down country and sector choices (green). EM Leaders has consistently added alpha from all three sources.

Factor attribution reveals the consistency of our growth and innovation philosophy. Negative style tilts are very modest, revealing a broadly balanced style, and are focused on higher book-price values and smaller capitalization. Positive style tilts are mostly concentrated in growth and in quality, which also includes the integration of sustainability.

Stock profiles illustrate how a specific stock compares to the investment universe and how it changes over time. Twelve criteria are measured as Z-scores (standard deviation from the mean) and are grouped into four categories: fundamental and technical, quality and growth. Typically, investors seek a large surface in the dodecagon, which gradually erodes over the investment horizon. Examples of potentially attractive stocks are given on the country pages.