5 Stocks to Buy According to Teresa Barger’s Cartica Management

2. MercadoLibre, Inc. (NASDAQ:MELI)

Cartica Management’s Stake Value: $27,756,000
Percentage of Cartica Management’s 13F Portfolio: 10.77%
Number of Hedge Fund Holders: 68

MercadoLibre, Inc. (NASDAQ:MELI) is a Latin American e-commerce and financial company. The firm operates MercadoPago – a financial platform, Mercado Envios – a service that allows sellers to send their purchases throughout Latin America, and Mercado Shops – which enables merchants to create online stores. Generation Investment Management, managed by David Blood and Al Gore, is MercadoLibre, Inc. (NASDAQ:MELI)’s largest shareholder, with shares worth $328.40 million.

On October 6, Jefferies analyst John Colantuoni maintained a ‘Hold’ rating on MercadoLibre, Inc. (NASDAQ:MELI) while lowering his price objective from $990 to $970. The analyst decreased US internet predictions and price goals in expectation of a subdued macro environment.

Cartica Management began building its stake in the company in the fourth quarter of 2020. In the second quarter of 2022, it held 43,582 shares of MercadoLibre, Inc. (NASDAQ:MELI). These were worth $27.76 million and accounted for 10.77% of its portfolio. MercadoLibre, Inc. (NASDAQ:MELI) is the second-largest holding of Teresa Barger’s Cartica Management.

According to Insider Monkey’s Q2 data, 68 hedge funds were bullish on MercadoLibre, Inc. (NASDAQ:MELI), with combined stakes of $2.01 billion, compared to 63 funds in the earlier quarter, holding stakes in the company valued at $3.17 billion.

In its Q2 2022 investor letter Polen Capital, an investment management firm, mentioned MercadoLibre, Inc. (NASDAQ:MELI). Here is what the fund said:

 “As written in our Q4 2021 commentary, some significant differences exist between the underlying profitability of ecommerce companies in emerging markets. However, MercadoLibre was punished during the quarter in part because of the sector it happens to operate in. Given its robust cash flow generation, we believe MercadoLibre is well-poised to continue delivering solid cash flows that will enable it to support its operations fully. Going forward, we expect the business to continue growing and providing value-added services to its customers across the continent. In turn, we capitalized on the weakness during the quarter to opportunistically increase our position in MercadoLibre.”