Here’s How MercadoLibre (MELI) Shares Managed to Outperform in the Third Quarter

SaltLight Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -10.10%. The global market fluctuations affected the fund’s performance in the third quarter. The fund’s investment in concentrated portfolio businesses can result in higher volatility, but better returns may also offset volatility. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the third-quarter letter, SaltLight Capital discussed stocks like MercadoLibre, Inc. (NASDAQ:MELI). Headquartered in Montevideo, Uruguay, MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform. On November 11, 2022, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $974.89 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was 14.60% and its shares lost 40.31% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI)   has a market capitalization of $49.032 billion.

SaltLight Capital made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2022 investor letter:

“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).

LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3^rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”

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MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter which was 63 in the previous quarter.

We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared Polen Capital’s views on the company. 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.