Is it a Good Time to Add MercadoLibre (MELI) Shares in Your Portfolio?

Polen Capital, an investment management company, released its “Polen Global Emerging Markets Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -9.27% net of fees compared to a -11.44% return for the MSCI Emerging Markets Index. Global economic concerns impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Polen Capital discussed stocks like MercadoLibre, Inc. (NASDAQ:MELI). Headquartered in Montevideo, Uruguay, MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce platform. On September 29, 2022, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $829.68 per share. One-month return of MercadoLibre, Inc. (NASDAQ:MELI) was -3.39% and its shares lost 50.60% of their value over the last 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $41.765 billion.

Here is what Polen Capital specifically said about MercadoLibre, Inc. (NASDAQ:MELI) in its Q2 2022 investor letter:

“As written in our Q4 2021 commentary, some significant differences exist between the underlying profitability of ecommerce companies in emerging markets. However, MercadoLibre, Inc. (NASDAQ:MELI) was punished during the quarter in part because of the sector it happens to operate in. Given its robust cash flow generation, we believe MercadoLibre is well-poised to continue delivering solid cash flows that will enable it to support its operations fully. Going forward, we expect the business to continue growing and providing value-added services to its customers across the continent. In turn, we capitalized on the weakness during the quarter to opportunistically increase our position in MercadoLibre.”

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter which was 63 in the previous quarter.

We discussed MercadoLibre, Inc. (NASDAQ:MELI) in another article and shared Lakehouse Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 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.