Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 3.29% (net of fees) outperforming the Russell 1000 Growth Index’s 3.19% gain. Stock selection in the Health Care sector primarily drove the portfolio’s outperformance. Also, overweight position and stock selection in the Financials sector buoyed the gains. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Growth Equity Fund highlighted stocks like MercadoLibre, Inc. (NASDAQ:MELI), in the third quarter 2024 investor letter. MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. The one-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -2.68%, and its shares gained 16.56% of their value over the last 52 weeks. On December 10, 2024, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,879.18 per share with a market capitalization of $95.27 billion.
Parnassus Growth Equity Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2024 investor letter:
“Against the backdrop of macro uncertainty, we opportunistically added high-quality businesses that had sold off amid overstated fears of consumer spending weakness. These new holdings include fast-casual chain Chipotle Mexican Grill and Latin American online retail giant MercadoLibre, Inc. (NASDAQ:MELI) in the Consumer Discretionary sector.
MercadoLibre benefits from the ongoing transition from offline to online shopping, along with the growing adoption of digital financial services in Latin America. With its strong brand, robust logistics network, dominant market share and top-tier management team, the company is well positioned to sustain revenue growth and margin expansion.”
A customer using their phone to access an online commerce platform.
MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the third quarter which was 84 in the previous quarter. MercadoLibre, Inc.’s (NASDAQ:MELI) net income rose by 11% year-over-year, reaching $397 million in the third quarter. While we acknowledge the potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed MercadoLibre, Inc. (NASDAQ:MELI) and shared Polen International Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.
