Is Mercadolibre Inc (MELI) A Good Stock To Buy?

As aggregate interest increased, key money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, assembled the largest call position in Mercadolibre Inc (NASDAQ:MELI). Citadel Investment Group had $11.7 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $10 million position during the quarter. The other funds with new positions in the stock are Jim Simons’ Renaissance Technologies, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, and John Paulson’s Paulson & Co.

Let’s also examine hedge fund activity in other stocks similar to Mercadolibre Inc (NASDAQ:MELI). We will take a look at Liberty Broadband Corp (NASDAQ:LBRDK), FMC Corp (NYSE:FMC), Liberty Broadband Corp (NASDAQ:LBRDA), and Spirit Realty Capital Inc (NYSE:SRC). All of these stocks’ market caps resemble MELI’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.38 billion. That figure was $593 million in MELI’s case. Liberty Broadband Corp (NASDAQ:LBRDK) is the most popular stock in this table. On the other hand Spirit Realty Capital Inc (NYSE:SRC) is the least popular one with only 17 bullish hedge fund positions. Mercadolibre Inc (NASDAQ:MELI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LBRDK might be a better candidate to consider a long position.

Disclosure: None