Polen Capital on MercadoLibre (MELI): “We Expect the Business to Continue Growing”

Polen Capital, an investment management firm, published its “Polen Global Emerging Markets Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Polen Global Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned -8.94% gross and -9.27% net of fees, respectively, versus the -11.44% return for the MSCI Emerging Markets Index (the “Index”).  Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Polen Global Emerging Markets Growth Fund mentioned MercadoLibre, Inc. (NASDAQ:MELI) and explained its insights for the company. Founded in 1999, MercadoLibre, Inc. (NASDAQ:MELI) is a Buenos Aires, Argentina-based online marketplace company with a $47.0 billion market capitalization. MercadoLibre, Inc. (NASDAQ:MELI) delivered a -30.75% return since the beginning of the year, while its 12-month returns are down by -39.70%. The stock closed at $933.76 per share on October 05, 2022.

Here is what Polen Global Emerging Markets Growth Fund has to say 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 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.”

Our calculations show that MercadoLibre, Inc. (NASDAQ:MELI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MercadoLibre, Inc. (NASDAQ:MELI) was in 68 hedge fund portfolios at the end of the second quarter of 2022, compared to 63 funds in the previous quarter. MercadoLibre, Inc. (NASDAQ:MELI) delivered a 32.53% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on MercadoLibre, Inc. (NASDAQ:MELI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.


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