Home Hedge Funds Multiple Reasons for the Outperformance of MercadoLibre (MELI) in Q4

Multiple Reasons for the Outperformance of MercadoLibre (MELI) in Q4


Artisan Partners, an investment management company, released its “Artisan Developing World Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund (Investor Class) returned 11.79% compared to 7.86% for the MSCI Emerging Markets Index. The fund has returned 95.52% cumulatively since June 30, 2015, compared to a 29.14% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2023.

In its Q4 2023 investor letter, Artisan Developing World Fund featured stocks such as MercadoLibre, Inc. (NASDAQ:MELI). Headquartered in Montevideo, Uruguay, Mercadolibre, Inc. (NASDAQ:MELI) is an online commerce platform that operates through Mercado Libre Marketplace and Mercado Pago FinTech platform. On January 5, 2024, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $1,538.83 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -4.70%, and its shares gained 71.49% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $77.802 billion.

Artisan Developing World Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its fourth quarter 2023 investor letter:

“Top contributors to performance for the quarter included Latin American marketplace MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre benefited from share gains in e-commerce, resilient performance in fintech including increased credit card disbursements, and a positive presidential election outcome in Argentina.

Moreover, we have marginally reduced portfolio concentration over the course of the year. Essentially, 2022 was a moment of extremely low reinvestment risk that allowed us to deemphasize China and other holdings, while concentrating around a handful of financially and strategically sound investments such as Nvidia, MercadoLibre, Airbnb and CrowdStrike. With these investments having largely reflated, we have sought to redistribute some of this capital while retaining significant residual positions. It is our hope that these actions can enhance our ability to execute our investment program if, for example, market exuberance about monetary policy proves excessive.”

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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, 76 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of third quarter which was 77 in the previous quarter.

We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared the list of best fast growth stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.

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