Mercadolibre Inc (MELI): Insiders Aren’t Crazy About It

Page 1 of 2

Mercadolibre Inc (NASDAQ:MELI) shareholders have witnessed a decrease in hedge fund sentiment of late.

If you’d ask most investors, hedge funds are viewed as underperforming, old investment tools of years past. While there are greater than 8000 funds trading at present, we at Insider Monkey hone in on the top tier of this group, around 450 funds. Most estimates calculate that this group has its hands on the lion’s share of the smart money’s total asset base, and by watching their top picks, we have determined a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as important, optimistic insider trading activity is a second way to break down the stock market universe. As the old adage goes: there are a variety of reasons for an executive to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Several empirical studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).

Consequently, it’s important to take a glance at the latest action surrounding Mercadolibre Inc (NASDAQ:MELI).

How have hedgies been trading Mercadolibre Inc (NASDAQ:MELI)?

Heading into Q2, a total of 7 of the hedge funds we track held long positions in this stock, a change of -30% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially.

When looking at the hedgies we track, William B. Gray’s Orbis Investment Management had the biggest position in Mercadolibre Inc (NASDAQ:MELI), worth close to $92 million, comprising 0.8% of its total 13F portfolio. Coming in second is Josh Resnick of Jericho Capital Asset Management, with a $24.9 million position; 2.6% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, Christopher Lord’s Criterion Capital and Ken Griffin’s Citadel Investment Group.

Since Mercadolibre Inc (NASDAQ:MELI) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers who sold off their full holdings heading into Q2. Intriguingly, Richard Driehaus’s Driehaus Capital said goodbye to the biggest stake of all the hedgies we key on, worth about $7.1 million in stock.. David Blood and Al Gore’s fund, Generation Investment Management, also dumped its stock, about $6.3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds heading into Q2.

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

Insider buying is best served when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time frame, Mercadolibre Inc (NASDAQ:MELI) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity 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 are similar to MELI’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!