Is Mercadolibre Inc (MELI) Going to Burn These Hedge Funds?

Page 1 of 2

Now, according to many market players, hedge funds are perceived as delayed, outdated financial vehicles of an era lost to time. Although there are more than 8,000 hedge funds in operation in present day, Insider Monkey aim at the crème de la crème of this group, about 525 funds. It is widely held that this group controls the lion’s share of the hedge fund industry’s total assets, and by paying attention to their highest quality picks, we’ve spotted a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as crucial, positive insider trading activity is another way to analyze the investments you’re interested in. As the old adage goes: there are plenty of stimuli for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the valuable potential of this strategy if you understand where to look (learn more here).

Keeping this in mind, we’re going to discuss the recent info about Mercadolibre Inc (NASDAQ:MELI).

Mercadolibre Inc (NASDAQ:MELI)

What does the smart money think about Mercadolibre Inc (NASDAQ:MELI)?

Heading into Q3, a total of 19 of the hedge funds we track were bullish in this stock, a change of 171% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.

#N/A

Consequently, certain money managers have jumped into Mercadolibre Inc (NASDAQ:MELI) headfirst. Orbis Investment Management, managed by William B. Gray, created the most outsized position in Mercadolibre Inc (NASDAQ:MELI). Orbis Investment Management had 95.9 million invested in the company at the end of the quarter. Josh Resnick’s Jericho Capital Asset Management also initiated a $37 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, Jim Simons’s Renaissance Technologies, and Israel Englander’s Millennium Management.

What have insiders been doing with Mercadolibre Inc (NASDAQ:MELI)?

Insider buying is at its handiest when the company in focus has experienced transactions within the past six months. Over the last six-month time period, Mercadolibre Inc (NASDAQ:MELI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Mercadolibre Inc (NASDAQ:MELI). These stocks are E Commerce China Dangdang Inc (ADR) (NYSE:DANG), Stamps.com Inc. (NASDAQ:STMP), PC Connection, Inc. (NASDAQ:PCCC), Liquidity Services, Inc. (NASDAQ:LQDT), and Liberty Interactive (Interactive group) (NASDAQ:LINTA). All of these stocks are in the catalog & mail order houses industry and their market caps match MELI’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!