A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Mercadolibre Inc (NASDAQ:MELI).
Mercadolibre Inc (NASDAQ:MELI) shareholders have witnessed an increase in enthusiasm from smart money in recent months. Mercadolibre Inc (NASDAQ:MELI) was in 74 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 81. There were 69 hedge funds in our database with MELI holdings at the end of March. Our calculations also showed that MELI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Louis Bacon Moore of Moore Capital
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Do Hedge Funds Think MELI Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 74 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 7% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MELI over the last 24 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Mercadolibre Inc (NASDAQ:MELI) was held by Alkeon Capital Management, which reported holding $578.4 million worth of stock at the end of June. It was followed by D E Shaw with a $414.4 million position. Other investors bullish on the company included Tybourne Capital Management, Citadel Investment Group, and Fisher Asset Management. In terms of the portfolio weights assigned to each position Prince Street Capital Management allocated the biggest weight to Mercadolibre Inc (NASDAQ:MELI), around 14.68% of its 13F portfolio. Marcho Partners is also relatively very bullish on the stock, setting aside 13.43 percent of its 13F equity portfolio to MELI.
As industrywide interest jumped, specific money managers have been driving this bullishness. Moore Global Investments, managed by Louis Bacon, created the most valuable position in Mercadolibre Inc (NASDAQ:MELI). Moore Global Investments had $26.9 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $26.5 million position during the quarter. The following funds were also among the new MELI investors: Amir Mokari’s Emerson Point Capital, Frank Fu’s CaaS Capital, and Benjamin A. Smith’s Laurion Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Mercadolibre Inc (NASDAQ:MELI) but similarly valued. We will take a look at NetEase, Inc (NASDAQ:NTES), CME Group Inc (NASDAQ:CME), Dell Technologies Inc. (NYSE:DELL), Duke Energy Corporation (NYSE:DUK), Canadian National Railway Company (NYSE:CNI), Truist Financial Corporation (NYSE:TFC), and Activision Blizzard, Inc. (NASDAQ:ATVI). This group of stocks’ market caps match MELI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NTES | 43 | 3720524 | 11 |
| CME | 62 | 2649845 | 2 |
| DELL | 62 | 5601143 | 8 |
| DUK | 36 | 566143 | 2 |
| CNI | 40 | 5310284 | 4 |
| TFC | 39 | 1019267 | 3 |
| ATVI | 78 | 3651606 | 2 |
| Average | 51.4 | 3216973 | 4.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 51.4 hedge funds with bullish positions and the average amount invested in these stocks was $3217 million. That figure was $4024 million in MELI’s case. Activision Blizzard, Inc. (NASDAQ:ATVI) is the most popular stock in this table. On the other hand Duke Energy Corporation (NYSE:DUK) is the least popular one with only 36 bullish hedge fund positions. Mercadolibre Inc (NASDAQ:MELI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MELI is 82.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.1% in 2021 through September 20th and still beat the market by 6.9 percentage points. Hedge funds were also right about betting on MELI as the stock returned 16.9% since the end of Q2 (through 9/20) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
