Stock Market Today, Dec. 17: Nu Holdings Falls After Mixed Institutional Moves Signal Uncertainty

Nu Holdings (NYSE:NU), Latin American digital banking provider, closed Wednesday’s session at $15.86, down 2.10%. Trading volume reached 49.6 million shares, nearly 25% above its three-month average of 39.6 million shares.

Wednesday’s drop follows third-quarter 13F disclosures that are sending mixed institutional ownership signals and keeping investors focused on Nu’s ability to sustain recent profitability gains.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 1.16% to 6,722, while the Nasdaq Composite (NASDAQINDEX:^IXIC) lost 1.81% to finish at 22,694. Within Digital Banking, industry peers Banco Macro (NYSE:BMA) and Grupo Financiero Galicia (NASDAQ:GGAL) also slipped modestly, underscoring how Latin American financial stocks are trading against a backdrop of shifting institutional flows.

What this means for investors

Recent 13F filings revealed that two asset managers have made distinct decisions regarding Nu Holdings. Assenagon Asset Management increased its stake in Nu Holdings by nearly 92% while Salem Investment Counselors trimmed its position by 6%. At first glance, these decisions may seem confusing and lead one to wonder why these funds hold such differing opinions on the stock.

However, the details matter. In the case of Assenagon, the nearly doubling of its Nu position brings those shares up to 0.35% of its overall portfolio. Salem's trim of Nu changed its allocation to the stock from 0.99% to 0.98%. The bottom line is that for both funds, its decision to buy or sell Nu Holdings is likely more about marginal portfolio management than it is about the fundamentals of Nu's business.

Jeff Santoro has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.