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Sands Capital points to Nu Holdings risks as fund returns 26.9%
Nu Holdings closed at $13.84 on Aug. 7, 2026, after higher-than-expected provisions in Q1 2026 pressured gross profit and credit-quality concerns.
Sands Capital Technology Innovators Fund said it returned 26.9% net in the second quarter of 2026, citing a sharp rebound in global equities led by information technology.
In its Q2 2026 investor letter, the firm highlighted that while portfolio gains were strong across areas tied to AI infrastructure, performance varied as the fund’s concentrated exposure to mega-cap chip designers and manufacturers weighed when market leadership broadened into CPUs, networking, and memory.
The letter also discussed Nu Holdings Ltd., a digital banking platform, as a name that detracted from fund performance in the quarter. Nu Holdings operates Nubank, serving more than 100 million customers in Latin America, and Sands Capital noted that first-quarter 2026 revenue growth was in line with expectations but that higher-than-expected provisions weighed on gross profit and raised investor concerns about household debt and credit quality.