Janus Henderson Investors, an investment management company, released its “Forty Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned 19.00% in the second quarter of 2026, outperforming the Russell 1000 Growth Index’s 16.74% gain as strong stock selection and an overweight position in healthcare supported results. The firm said resilient economic growth, robust corporate earnings, easing geopolitical tensions that pushed crude oil below $75 per barrel, and continued AI investment supported markets, although the Federal Reserve kept interest rates unchanged as inflation remained elevated. It added that AI-related opportunities remain a key driver of its outlook, noting demand for AI computing power is expected to exceed supply for the foreseeable future, while one portfolio holding reported revenue growth of more than 30% year over year, and another has an AI-related contracted orders backlog exceeding $550 billion. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Janus Henderson’s Forty Fund highlighted stocks like MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre, Inc. (NASDAQ:MELI) is a leading Latin American e-commerce and fintech company operating online marketplaces and digital payment services across the region. The one-month return of MercadoLibre, Inc. (NASDAQ:MELI) was 4.36% while its shares traded between $1,495.00 and $2548.50 over the last 52 weeks. On July 31, 2026, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at approximately $1,877.95 per share, with a market capitalization of about $95.542 billion.
Janus Henderson’s Forty Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q2 2026 investor letter:
MercadoLibre, Inc. (NASDAQ:MELI) was another relative detractor. As a leading e-commerce operator and financial technology company in Latin America, MercadoLibre has continued to demonstrate robust and consistent revenue growth despite increased competition from other e-commerce companies. To bolster its value proposition relative to these competitors, MercadoLibre has invested in logistics, advertising, and technology. This additional spending has pressured operating margins and profitability, which disappointed investors. As long-term shareholders, we remain constructive on the company’s efforts to expand and strengthen its competitive footprint, efforts that we believe will help build its enterprise value for the future. We held onto the stock.
MercadoLibre, Inc. (NASDAQ:MELI) is in 37th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 102 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the first quarter, which was 113 in the previous quarter. 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 the list of the most promising fintech stocks to buy now. In addition, please check out our hedge fund investor letters Q1 2026 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.
