Brown Capital Management, an investment management company, released its “The Brown Capital Management International All Company Strategy” Q3 2022 investor letter. A copy of the same can be downloaded here. The strategy returned -9.08% in the quarter compared to a -9.80% return for the MSCI AC World ex US Index. Global uncertainty in the stock market affected the performance of the strategy. In addition, check the fund’s top five holdings to know its best picks in 2022.
Brown Capital Management highlighted stocks like Mercadolibre, Inc. (NASDAQ:MELI) in its Q3 2022 investor letter. Headquartered in Montevideo, Uruguay, Mercadolibre, Inc. (NASDAQ:MELI) is an eCommerce platform. On December 20, 2022, Mercadolibre, Inc. (NASDAQ:MELI) stock closed at $875.91 per share. One-month return of Mercadolibre, Inc. (NASDAQ:MELI) was -8.49%, and its shares lost 28.47% of their value over the last 52 weeks. Mercadolibre, Inc. (NASDAQ:MELI) has a market capitalization of $44.054 billion.
Brown Capital Management made the following comment about Mercadolibre, Inc. (NASDAQ:MELI) in its Q3 2022 investor letter:
“Mercadolibre, Inc. (NASDAQ:MELI) is an Argentina-based company that operates the leading e-commerce shopping platform in Latin America, with services similar to Amazon.com, PayPal Holdings and eBay. The penetration of e-commerce in Latin America is relatively low compared to most developed markets and countries like China. MercadoLibre is pushing the adoption of e-commerce, and over the last five years the company has grown revenue by more than 50% per year. MercadoLibre originally started as a platform to connect buyers and sellers, similar to eBay. While the company is successful and still growing, we are excited for the potential in its newer businesses such as payment and credit. For example, we believe the profitability of the payments business can eventually eclipse that of MercadoLibre’s original business.
In the third quarter, MercadoLibre released a strong earnings report, with the payments business (excluding the core marketplace) growing 135% year over year and the credit portfolio growing 232%. Going forward, we expect strong sales growth as well as meaningful margin expansion as the company reaps benefits from the significant investments it made in delivery infrastructure starting in 2018. MercadoLibre’s dominant position in countries like Brazil is difficult to erode given the large data sets it has on millions of consumers and businesses, its delivery capabilities, and the nature of winner-take-all marketplaces.”
Mercadolibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held Mercadolibre, Inc. (NASDAQ:MELI) at the end of the third quarter, which was 68 in the previous quarter.
We discussed Mercadolibre, Inc. (NASDAQ:MELI) in another article and shared the list of best aggressive stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
