Altron Capital: “MercadoLibre (MELI) has a Bright Future”

Altron Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The S&P500 had a return of 11.0% in the fourth quarter, bringing the total return for 2021 to 28.7%. The firm’s portfolios have underperformed this quarter, but are taking this opportunity to buy more into some of its current positions. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Altron Capital Management, in its Q4 2021 investor letter, mentioned MercadoLibre, Inc. (NASDAQ:MELI) and discussed its stance on the firm. Founded in 1999, MercadoLibre, Inc. (NASDAQ:MELI) is a Buenos Aires, Argentina-based online marketplace company with a $58.5 billion market capitalization, and is currently spearheaded by its CEO, Stelleo Passos Tolda. MercadoLibre, Inc. (NASDAQ:MELI) delivered a -13.91% return since the beginning of the year, while its 12-month returns are downp by -27.16%. The stock closed at $1,160.80 per share on April 08, 2022.

Here is what Altron Capital Management has to say about MercadoLibre, Inc. (NASDAQ:MELI) in its Q4 2021 investor letter:

“Despite turning in a positive quarter, MELI’s share price has been driven lower amid the broader tech selloff and inflation concerns in Brazil, the company’s largest market. Brazil is currently dealing with double-digit inflation rates, although recent data show those numbers abating slightly. This is not the first time that MELI has had to contend with high inflation in one of its major markets. Argentina has dealt with persistently high inflation over the past several years, but MELI continues to perform well despite this challenging macro environment. Macroeconomic headwinds certainly dampen 70%+ growth in year-over-year net revenues but barring long-term hyperinflation and a broader economic collapse we still believe MELI has a bright future and is currently priced at a reasonable valuation given how quickly the company is growing.

fikri-rasyid-ezeC8-clZSs-unsplash

Our calculations show that MercadoLibre, Inc. (NASDAQ:MELI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MercadoLibre, Inc. (NASDAQ:MELI) was in 74 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 68 funds in the previous quarter. MercadoLibre, Inc. (NASDAQ:MELI) delivered a 10.20% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on MercadoLibre, Inc. (NASDAQ:MELI) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.