XP’s New Backer Sees Opportunity in Brazil’s Next Financial Chapter

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On October 16, 2025, MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT LLC disclosed a new position in XP, acquiring 320,053 shares in a $6.01 million transaction during Q3 2025.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated October 16, 2025, MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT LLC initiated a new stake in XP (NASDAQ:XP), purchasing approximately 320,053 shares. This $6.01 million transaction brings the fund’s total reportable positions to 38 and raises XP’s share to 1.4% of fund assets as of September 30, 2025.

What else to know

This new position in XP represents 1.4% of MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT LLC’s 13F assets under management as of September 30, 2025

Top five holdings after the filing:

• PDD: $65.27 million (15.3% of AUM)
• SE: $38.11 million (8.9% of AUM) as of 2025-09-30
• LEGN: $33.54 million (7.9% of AUM) as of 2025-09-30
• TCOM: $29.19 million (6.8% of AUM) as of 2025-09-30
• BZ: 24.06 million (5.6% of AUM) as of 2025-09-30

As of October 16, 2025, XP shares were priced at $16.41, representing a one-year decline of 9.59% and underperforming the S&P 500 by 15.79 percentage points over the same period

Company Overview

Company Snapshot

XP Inc. is a leading financial services provider in Brazil, operating at scale with a diversified suite of investment and banking products. The company uses a technology-driven open platform to connect clients with a broad array of financial solutions.

XP Inc. offers securities brokerage, private pension plans, investment banking, wealth management, and a broad range of financial products and services in Brazil.

The company operates an open platform model, generating revenue from brokerage, advisory, asset management, and financial product distribution fees.

XP Inc. serves mass-affluent, high-net-worth individuals, institutional clients, and corporate issuers seeking capital markets and investment solutions. Its strategic focus on advisory services and digital access positions it competitively in Brazil's evolving capital markets landscape.

Foolish take

Matthews International Capital Management initiated a $6 million position in XP in the third quarter, adding roughly 320,000 shares as part of a renewed focus on emerging-market financials. After a stretch of cautious sentiment toward Brazil's markets, the move hints that confidence may be starting to return.

XP has become one of Brazil's most influential investment platforms. The company blends digital access along with a large network of independent advisors. Its open architecture allows clients to compare and invest across funds, insurance, and credit products—a sharp contrast to the closed ecosystem of Brazil's major banks. This business model has helped XP capture a growing share of household wealth as it migrates from deposits to markets, which carves a pivotal role in the country's financial modernization.

Momentum is quietly building behind this shift. As more Brazilians invest through market platforms rather than banks, companies with XP's scale and credibility are positioned not just to participate — but to lead in the country's next wave of financial growth.

Glossary

13F assets under management: The total value of securities a fund manager reports in quarterly filings with the SEC.
Position: The amount of a particular security or investment held by an individual or institution.
Stake: The ownership interest or share held in a company or asset.
Assets under management (AUM): The total market value of investments managed on behalf of clients.
Open platform model: A business approach allowing clients access to products and services from multiple providers, not just the company itself.
Brokerage: The business of facilitating the buying and selling of financial securities for clients.
Advisory services: Professional guidance provided to clients on investment decisions and financial planning.
Asset management: The management of investments on behalf of clients to achieve specific financial goals.
Financial product distribution fees: Fees earned by firms for selling or distributing financial products to clients.
Institutional clients: Organizations such as pension funds, insurance companies, or endowments that invest large sums of money.
Capital markets: Financial markets where companies raise funds by issuing stocks, bonds, or other securities.
TTM: The 12-month period ending with the most recent quarterly report.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.