Should You Retain MercadoLibre (MELI) Shares?

Baron Funds, an asset management company, released its “Baron Global Advantage Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund gained 1.7% (Institutional Shares) compared to a 6.8% decline for the MSCI ACWI Index and a 5.9% decline for the MSCI ACWI Growth Index. Stock selection contributed to the fund’s outperformance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like MercadoLibre, Inc. (NASDAQ:MELI) in the Q3 2022 investor letter. Headquartered in Montevideo, Uruguay, MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform. On November 2, 2022, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $851.28 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -8.38% and its shares lost 45.31% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $42.852 billion.

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

“MercadoLibre, Inc. (NASDAQ:MELI) is the largest e-commerce company in Latin America. Shares appreciated 30% on quarterly results that beat consensus expectations, with 53% year-over-year growth in revenues and 63% yearover-year growth in EBITDA. E-commerce trends continue to show resiliency as MercadoLibre is not experiencing the same post-COVID normalization seen by e-commerce companies in developed markets. Additionally, business trends in the fintech division showed continued positive momentum with 80% year-over-year growth in total payment volumes, leading to consensus upgrades. We believe MercadoLibre will be the dominant player in a Latin American e-commerce industry that remains early in its growth lifecycle, driven by the relative low e-commerce penetration in the region. We remain shareholders.”

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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.