Sands Capital Technology Innovators Fund maintains confidence in NU despite Q2 2026 asset quality worries weighing on performance.
Nu Holdings Ltd. (NU) closed at $13.84 on August 7, 2026, valuing the digital bank at $66.85 billion. The stock underperformed in Q2 2026 due to higher-than-expected provisions, sparking investor concerns over household debt and credit quality in Latin America.
NU reported a 1.24% one-month return and a 16.11% gain over the past 52 weeks. First-quarter 2026 revenue growth met expectations, but elevated provisions pressured gross profit. The fund noted Brazil’s low unemployment and real wage growth as key mitigants for future credit losses.
Sands Capital Technology Innovators Fund stated it remains comfortable with NU’s prospects after reviewing the bank’s balance sheet and engaging with management. The fund suggested Brazilian Central Bank data may overstate delinquencies due to accounting changes.