Baron FinTech Fund: “MercadoLibre (MELI) is a Long-Term Winner”

Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron FinTech Fund” investor letter – a copy of which can be downloaded here. A return of 13.61% was recorded by its Retail Shares, and 13.67% by its Institutional Shares in the fourth quarter of 2020, both below its  FactSet Global FinTech Benchmark that delivered a 21.35% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron FinTech Fund, in their Q4 2020 investor letter, mentioned MercadoLibre, Inc. (NASDAQ: MELI) and emphasized their views on the company. MercadoLibre, Inc. is a Buenos Aires, Argentina-based online marketplace company that currently has a $73.9 billion market capitalization. Since the beginning of the year, MELI delivered a -11.46% return, while its 12-month gains are decently up by 202.70%. As of March 22, 2021, the stock closed at $1,476.11 per share.

Here is what Baron FinTech Fund has to say about MercadoLibre, Inc. in their Q4 2020 investor letter:

“Shares of MercadoLibre, Inc., the largest E-commerce marketplace in Latin America, appreciated during the quarter. The company reported accelerating gross merchandise volume in the third quarter despite the reopening of physical retail over the summer, indicating stickiness among recently acquired users and market share gains in some of its largest markets, particularly Brazil. We remain shareholders as we believe the company is a long-term winner in both E-commerce and payments across a region that remains in the early stages of digitization.”

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Our calculations show that MercadoLibre, Inc. (NASDAQ: MELI) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, MercadoLibre, Inc. was in 79 hedge fund portfolios, compared to 81 funds in the third quarter. MELI delivered a -14.46% return in the past 3 months.