Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” May 2025 investor letter. A copy of the letter can be downloaded here. May proved to be a favorable month for the Fund, driven by a boost in investor sentiment and solid results from portfolio holdings. Overall, the firm remains satisfied with the strong fundamental performance and long-term growth outlook of its portfolio holdings. The Fund returned 6.1% net of fees and expenses for the month compared to 5.1% for its benchmark. Since its inception in December 2017, the Fund has returned 250.6% compared to 133.8% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its May 2025 investor letter, Lakehouse Global Growth Fund 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 -2.62%, and its shares gained 57.97% of their value over the last 52 weeks. On July 3, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,514.05 per share, with a market capitalization of $127.456 billion.
Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its May 2025 investor letter:
“Buenos Aires-based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI) delivered another strong result with an impressive balance of growth and profitability. Net revenue grew 37% year-on-year to $5.9 billion while operating income grew 45% to US$763 million. It’s core marketplace business grew across all major regions and total gross merchandise volume (GMV) increased 26% year-on-year to $13.3 billion. Argentina was a bright spot, with GMV growing 77% in USD terms as the economy continues to experience a rapid recovery. The platform’s key metrics remained healthy with unique buyers increasing 25% to 67 million – the strongest growth since early 2021 – and items sold growing 26%.
The company’s fintech business also continued to grow at a rapid clip, with total payment volume (TPV) growing 43% year-on-year to $58.3 billion. Unique active fintech users were up 31% to 64 million, driven by higher engagement across all regions, particularly Brazil and Mexico. Growth outside of the core MercadoLibre marketplace has also been particularly strong and off-platform TPV now represents over two-thirds of total volume. This is pleasing to see as it improves the potential success of other financial products, both existing and future, such as their asset management product which already has over $11 billion in assets under management. Zooming out, we remain strong supporters of the business and still believe it’s early days as the combination of relatively nascent penetration of e-commerce and a large underbanked population in Latin America provide an excellent foundation for future growth.”
A customer using their phone to access an online commerce platform.
MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the first quarter which was 96 in the previous quarter. While we acknowledge the potential of MercadoLibre, Inc. (NASDAQ:MELI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered MercadoLibre, Inc. (NASDAQ:MELI) and shared the list of best NASDAQ growth stocks to buy for the next 3 years. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
