LRT Capital: “Mercadolibre (MELI) is Now Trading at a Very Attractive Valuation”

LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -6.71% was recorded by the LRT Economic Moat strategy for the month of November 2021, extending its 12-month returns to +23.06%. Year-to-date, LRT Capital was able to post a gain of +17.91%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

LRT Capital Management, in its Q3 2021 investor letter, mentioned Mercadolibre, Inc. (NASDAQ: MELI) and discussed its stance on the firm. MercadoLibre, Inc. is a Buenos Aires, Argentina-based online marketplace company with a $57.7 billion market capitalization. MELI delivered a -31.68% return since the beginning of the year, while its 12-month returns are down by -28.76%. The stock closed at $1,144.50 per share on December 10, 2021.

Here is what LRT Capital Management has to say about MercadoLibre, Inc.  in its Q3 2021 investor letter:

“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”

Photo by Clay Banks on Unsplash

Based on our calculations, Mercadolibre, Inc. (NASDAQ: MELI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MELI was in 68 hedge fund portfolios at the end of the third quarter of 2021, compared to 74 funds in the previous quarter. Mercadolibre, Inc. (NASDAQ: MELI) delivered a -38.05% return in the past 3 months.

Just this month, we published an article about MELI being part of the Top 5 Stock Picks of David Halpert’s Prince Street Capital Management. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.