Is it Still Worthy to Invest in MercadoLibre (MELI)?

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned MercadoLibre, Inc. (NASDAQ:MELI) and explained its insights for the company. Founded in 1999,   is a Buenos Aires, Argentina-based online marketplace company with a $43.1 billion market capitalization. MercadoLibre, Inc. (NASDAQ:MELI) delivered a -36.37% return since the beginning of the year, while its 12-month returns are down by -55.91%. The stock closed at $857.93 per share on September 06, 2022.

Here is what Baron Fintech Fund has to say about MercadoLibre, Inc. (NASDAQ:MELI) in its Q2 2022 investor letter:

“These positive impacts were offset by losses in the E-Commerce and Digital IT Services themes. Weakness in E-Commerce was partly due to the underperformance of MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre was the third largest detractor due to currency depreciation along with a broader sell-off in Brazilian consumer and global internet stocks during the quarter.”

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Our calculations show that MercadoLibre, Inc. (NASDAQ:MELI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MercadoLibre, Inc. (NASDAQ:MELI) was in 68 hedge fund portfolios at the end of the second quarter of 2022, compared to 63 funds in the previous quarter. MercadoLibre, Inc. (NASDAQ:MELI) delivered a 6.71% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on MercadoLibre, Inc. (NASDAQ:MELI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.

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