Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” May 2023 investor letter. A copy of the same can be downloaded here. During the month, there were concerns about the deadline to raise the US debt ceiling. The fund returned 4.3% net of fees and expenses in May compared to a 1.0% return for the MSCI All Country World Index benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Lakehouse Global Growth Fund highlighted stocks MercadoLibre, Inc. (NASDAQ:MELI) in the May 2023 investor letter. Headquartered in Montevideo, Uruguay, Mercadolibre, Inc. (NASDAQ:MELI) is an eCommerce platform. On June 8, 2023, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,209.74 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -5.46%, and its shares gained 74.90% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $62.983 billion.
Lakehouse Global Growth Fund made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its May 2023 investor letter:
“The Fund’s fourth largest position, Buenos Aires based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), delivered a robust quarterly result that once again came in ahead of analyst expectations. Net revenue grew 35% yearon-year in U.S. dollar terms to US$3.0 billion while operating margins came in at 11.0%, providing a healthy balance of growth and profitability. Its marketplace business experienced strong growth across all key markets and increased 43% year-on-year to generate $9.4 billion in gross merchandise value (GMV). It was especially pleasing to see MercadoLibre continue to extend its market leadership, particularly in Brazil, where management noted accelerated share gains. In fact, the company grew local currency GMV at 28% in Brazil, which was 42 percentage points better than the rest of the industry, which declined 14%. This was, though, not a usual quarter given the plunge in sales at one of the company’s largest competitors, Americanas, which recently filed for bankruptcy after identifying 20 billion reais (US$3.9 billion) in accounting irregularities earlier this year.
The company’s fintech business also continued to show strong momentum with total payment volume (TPV) increasing 46% year-on-year to US$37 billion. Unique active fintech users reached almost 45 million in the quarter, driven by higher engagement across all markets, and processed transactions grew 88% year-on-year to 1.8 billion. In our view, Mercado Pago is now well positioned to become a leading financial services provider in the region thanks to its scale and the critical mass of services it has developed over the years. Big picture, despite the considerable success the business has experienced to date we believe it’s still early days and are happy to remain patient long term holders.”
MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of first quarter 2023 which was 75 in the previous quarter.
We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared the list of e commerce stocks billionaires are loading up on. In addition, please check out our hedge fund investor letters Q1 2023 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.
