37. MercadoLibre (MELI)
Number of Hedge Funds: 113 (2025Q4)
Number of Hedge Funds: 109 (2025Q3)
MercadoLibre (MELI) is currently one of the highest-conviction holdings among the world’s most elite investors. Based on the data from the Insider Monkey page as of late February 2026, the stock is being propelled by a massive “double tailwind” of institutional accumulation and fundamental re-rating.
1. Heavy Institutional & Hedge Fund Accumulation
The “smart money” is not just holding MELI; they are aggressively increasing their stakes.
- Elite Conviction: Generation Investment Management (led by David Blood and Al Gore) is a top holder with a stake valued at over $924 million, recently increasing their position by 3%.
- Massive Trading Activity: Marshall Wace LLP (Paul Marshall and Ian Wace) signaled extreme bullishness by boosting their position by a staggering 171% in the most recent filing period.
- Billionaire Approval: The stock is a core holding for legendary billionaire Stanley Druckenmiller, who ranks it among his top 10 best stock picks for 2026.
- Significant Positions: Other high-conviction players include Henry Ellenbogen’s Durable Capital Partners (up 76%) and Ken Griffin’s Citadel Investment Group (up 31%).
2. Why the Pros are Buying (Fundamental Bull Case)
Hedge funds are betting on MercadoLibre as the undisputed champion of the Latin American digital economy.
- Brazil Growth Engine: JPMorgan recently upgraded MELI to Overweight, specifically citing its dominant market share and growth trajectory in Brazil as a primary catalyst for 2026.
- AI Synergy: Analysts see the company entering a “golden age of AI synergy,” utilizing advanced data to optimize its logistics and fintech (Mercado Pago) wings, which is expected to drive significant margin expansion.
- The “Discount” Theory: Firms like Loomis Sayles have publicly stated that MELI is still trading at a discount relative to its long-term earnings power, viewing the current investment cycle as an ideal entry point before the next leg up.
3. Insider Trading: Tactical Moves at Record Levels
While hedge funds are buying, insiders have engaged in tactical sales as the stock tests new highs near $2,000.
- Director Activity: In December 2025, Directors Dubugras, Calemzuk, and Tolda sold portions of their holdings at prices ranging from $2,027 to $2,047.
- Context: These sales are typical for “legacy” insiders who have seen the stock price appreciate significantly. Crucially, the aggregate institutional buying from funds like Marshall Wace far outweighs this individual selling, suggesting that professional managers are happy to “absorb” these shares.
Summary Verdict
MELI is popular because it offers a rare combination of high-growth e-commerce and high-margin fintech in a region with massive untapped digital potential. With billionaires like Druckenmiller and firms like Marshall Wace piling in, the consensus among the world’s smartest investors is that MercadoLibre’s trajectory for the rest of 2026 remains decidedly upward.
