Investing

Billionaire Izzy Englander Closes Out Nu Holdings and Buys Into These Rising Stocks

Will Ashworth

Published: January 21, 2025 3:21 pm

Billionaire hedge fund manager Izzy Englander founded Millennium Management LLC in 1989 with $35 million in capital. Englander started as a floor trader on the American Stock Exchange. 

Today, Millennium has $506 billion in assets under management–a significant amount of these assets are sub-advisory engagements–and Englander is worth $14.2 billion according to the Bloomberg Billionaires Index.     

Bloomberg recently reported a study by LCH Investments stating that of the $3.7 trillion in profits generated by the hedge fund industry since 1969, $1.8 billion went to hedge fund fees, leaving their clients with just 50.4% of the gains. 

In 2024, Millennium, according to LCH, generated $9.4 billion in gains, the second-most of the top 20 hedge fund managers. So, while hedge fund investors did alright, Englander and Millennium did even better. 

Millennium’s 13F holdings report for Q3 2024 listed assets of $211 billion invested in 6,030 securities. Millennium nearly closed out Nu Holdings (NYSE:NU) in the third quarter and bought into these rising stars. 

Here’s why.    

Key Points About This Article:

• Millennium Management made many changes to its massive portfolio in Q3 2024. Nu Holdings (NYSE:NU) was the largest of its share sales.    
• It used some of the proceeds to add significantly to three of its excellent holdings.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks” now.

While not the Hedge Fund’s Largest Holding, NU Stock Was the Largest Share Sale

Millennium sold 38.8 million shares of Nu Holdings in the third quarter, reducing its stake in the Brazilian digital bank by 98.54%. The share sale would have generated approximately $482 million in proceeds based on the average of its high ($15.16) and low ($9.67) during the quarter.

While NU stock only accounted for 0.22% of Millennium’s portfolio at the end of June, it was the most significant share sale of any stock whose position was cut during the third quarter. Apple (NASDAQ:AAPL) was the next highest, with 11.6 million shares sold. 

Millennium sold approximately $2 billion in Apple stock in the third quarter, cutting its holdings by over 90%. Typically, it would be the quarter’s highlight to focus on, especially given the company’s troubles in China. 

However, Nu Holdings continues to be an intriguing story in Latin American fintech, so the share sale by Millennium of nearly 99% of NU stock warrants consideration.

Profit-taking is part of the answer but not the entire explanation. In a December 2024 letter to investors, Canadian portfolio manager White Falcom Capital Management explained why it sold half its stake in Nu Holdings. 

“Nu has recently corrected due to Brazil’s macroeconomic struggles. Nu reports its earnings in U.S. dollars but generates revenue in Brazilian reais, Mexican pesos, and Colombian pesos,” wrote White Falcon Capital Management portfolio manager Balkar Sivia.

“The sharp depreciation of these emerging market currencies, coupled with ongoing macroeconomic uncertainty, is making investors uncomfortable.”

Despite these concerns, the portfolio manager continues to like the company’s business. However, its shares had reached the firm’s intrinsic value estimate, which Millennium would have also considered. 

Millennium More Doubles Its Holdings in These 3 Stocks

The hedge fund increased its investments in Spotify Technology (NYSE:SPOT), iShares Bitcoin Trust ETF (NASDAQ:IBIT), and Medtronic (NYSE:MDT) in the third quarter by 113%, 116%, and 213%, respectively. 

Spotify stock gained 138% in 2024, its best year since going public in April 2018. A big reason for its success is the addition of audiobooks in 2022. Premium subscribers get up to 15 hours of monthly audiobook listening at no extra cost. That’s part of the reason it added six million premium subscribers in Q3 2024, bringing the total to 252 million, 12% higher than a year earlier. Not surprisingly, its operating margin was 11.4%, 404 basis points higher than Q2 2024 and 11-fold higher than a year ago. 

The business is humming, so 74% of analysts rate it a Buy. Millennium’s Spotify holdings are valued at $1.36 billion.

The hedge fund added 12.6 million shares of the Bitcoin ETF in the third quarter, a 116% increase that brought its total holdings to 23.5 million. Based on IBIT’s current share price, Millennium’s holdings are worth $1.41 billion, up 66% since the end of September. 

The Trump administration will boost cryptocurrencies. The president nominated former SEC commissioner and cryptocurrency supporter Paul Atkins to lead the SEC. Of course, President Trump and his wife have a vested interest in the success of cryptocurrencies.  

Lastly, Medtronic jumped from well outside the top 100 positions in June to the 37th spot by adding 4.22 million shares. As of Sept. 30, it held 6.22 million shares. At current prices, the shares are worth nearly $550 million.

In 2024, the medical devices company grew revenue by 3.6%, free cash flow by 14%, and non-GAAP earnings per share by 5%. In 2025, it’s expected to increase revenues in the mid-single digits, translating into greater free cash flow. Yielding 3.2%, it’s easy to see why Millennium made such a big buy.