Loomis Sayles, an investment management company, released its “International Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 13.10% vs. 8.06% for the MSCI ACWI Ex USA Index (Net) in the quarter. Stock selection in consumer discretionary, information technology, financials, consumer staples, and communication services sector, as well as allocation s to the consumer discretionary and consumer staples sectors, all positively impacted the fund’s relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Loomis Sayles International Growth 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 -12.71%, and its shares gained 10.26% of their value over the last 52 weeks. On December 26, 2024, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,732.76 per share with a market capitalization of $87.846 billion.
Loomis Sayles International Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2024 investor letter:
“MercadoLibre, Inc. (NASDAQ:MELI) is the largest online commerce platform in Latin America. The company offers its users an ecosystem of six integrated e-commerce services that include its marketplace, payment and fintech solutions, shipping and logistics, advertising, classified listings, and merchant web services. In its most recent fiscal year, commerce and related services accounted for approximately 57% of net revenue, while payments and fintech solutions accounted for approximately 43%. The company operates in 18 countries representing the vast majority of Latin American GDP, and its 218 million active users in 2023 represented over 45% of the region’s estimated 480 million total internet users. We believe MercadoLibre benefits from strong and sustainable competitive advantages that include its network and ecosystem, brand, and understanding of local markets that collectively contribute to its leadership position in each market it serves. With continued growth in internet access, increasing availability of credit, and the company’s continuing investments to improve the ease and convenience of transacting online, we believe MercadoLibre remains well positioned for sustained growth over the next decade, driven by the secular growth of e-commerce across Latin America.
A fund holding since inception, MercadoLibre reported strong quarterly financial results that were above consensus expectations for gross merchandise volume (GMV), revenue, operating income, and earnings per share, and the company gained market share in e-commerce, payments, and financial services. Despite remaining in a period of elevated investment spending, the company also showed strong improvements in operating profits that were materially above consensus expectations, as well strong free cash flow generation. Since 2019, the company’s GMV has increased by approximately 3.2 times, reflecting the high value proposition to consumers, and the company continues to invest in providing better selection, price, and service…” (Click here to read the full text)
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 the list of stocks that will make you rich in 2025. MercadoLibre, Inc. (NASDAQ:MELI) was a strong contributor to Hardman Johnston Global Equity’s performance in Q3 2024. 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.