Here's What Boosted MercadoLibre (MELI) in Q2

Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” annual investor letter. A copy of the letter can be downloaded here. The year was strong for the fund despite volatility, backed by the new US administration. The fund returned 33.4% net of fees and expenses compared to 18.4% for its benchmark. Since its inception in December 2017, the Fund has returned 254.4% compared to 139.9% 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 second-quarter 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 0.81%, and its shares gained 20.71% of their value over the last 52 weeks. On September 25, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,492.25 per share, with a market capitalization of $126.351 billion.

Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its second quarter 2025 investor letter:

"The Funds largest position, Latin American e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), was our second largest contributor. The company continued its long track record of impressive growth with net revenues growing 38% year-on-year to US$22.4 billion while operating margins came in at a healthy 12.9%. Its primary marketplace business gained market share across all key regions – namely Brazil, Argentina and Mexico – and the platform now boasts 67 million unique active buyers, up 25% year-on-year. Notably, despite their scale, the growth rate in active buyers saw a marked acceleration over the year and is now at its highest level since early 2021.

Another positive development during the year was the significant macroeconomic improvement in Argentina – MercadoLibre’s second largest market. It's no secret that the country has faced persistent economic challenges, however, there are initial signs the dramatic reforms implemented by Javier Milei's new administration are working. For instance, monthly inflation has dropped from a staggering 25.5% in December 2023 to as low as 1.5% in May 2025. In turn MercadoLibre has seen a marked improvement in its Argentinian business. As of the most recent quarter, items sold soared 52% year-on-year while fintech delivered 119% revenue growth in U.S. dollar terms, close to 4x the prior quarter's growth rate."

MercadoLibre, Inc. (NASDAQ:MELI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held MercadoLibre, Inc. (NASDAQ:MELI) at the end of the second quarter, which was 108 in the previous quarter. In the second quarter of 2025, MercadoLibre, Inc. (NASDAQ:MELI) delivered another strong quarter of financial performance with revenues growing over 30% year-on-year and record income from operations of $825 million. While we acknowledge the potential of MercadoLibre, Inc. (NASDAQ: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.

In another article, we covered MercadoLibre, Inc. (NASDAQ:MELI) and shared Sands Capital Global Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.