Brown Capital Management, an investment management company, released its “The Brown Capital Management International All-Company Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with Liberation Day on April 2, which resulted in a global stock market sell-off. Later, the stock market rallied following a 90-day tariff reprieve. In this environment, international stocks in particular skyrocketed, with the MSCI ACWI ex US index up 12.30% and the MSCI EAFE index up 12.07%. The strategy outperformed both international equity indexes this quarter. In addition, check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, The Brown Capital Management International All-Company Strategy highlighted stocks such as MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. The one-month return of MercadoLibre, Inc. (NASDAQ:MELI) was 0.81%, and its shares gained 20.71% of their value over the last 52 weeks. On September 25, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,492.25 per share, with a market capitalization of $126.351 billion.
The Brown Capital Management International All-Company Strategy stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its second quarter 2025 investor letter:
“MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based marketplace model company that operates the leading e-commerce shopping platform in Latin America (like Amazon) and provides payment and credit services (like PayPal). Although Latin America is a large market with a population of 650 million, it still has low e-commerce penetration compared to most developed markets. We first bought MercadoLibre in our International Small Company portfolio in 2013, and it graduated to the International All Company portfolio in 2020. Currently, about half of MercadoLibre’s business is in Brazil and just under a quarter is in each of Mexico and Argentina. Long-term investments in the marketplace and its rapid-shipping solutions provide significant barriers to entry for competitors. MercadoLibre ships about half of its orders with same-day or next-day arrival to more than 67 million unique active buyers. We also like the potential in the company’s newer fintech businesses, where 64 million monthly active users benefit from MercadoLibre’s payment-processing services, credit cards, loans and savings accounts.
During the quarter, the company reported 37% year-over-year revenue growth to $5.9 billion (USD) and 44% year-over-year earnings per share growth to $9.74. These results easily beat consensus expectations, suggesting that MercadoLibre remains a healthy and growing franchise. Note that the company was a leading contributor in the March quarter as well. We believe that MercadoLibre’s e-commerce and fintech marketplace model provides a unique competitive advantage, leaving the company with a long runway for growth.”
MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter, which was 108 in the previous quarter. In the second quarter of 2025, MercadoLibre, Inc. (NASDAQ:MELI) delivered another strong quarter of financial performance with revenues growing over 30% year-on-year and record income from operations of $825 million. While we acknowledge the risk and potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MercadoLibre, Inc. (NASDAQ:MELI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MercadoLibre, Inc. (NASDAQ:MELI) and shared Sands Capital Global Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
