MercadoLibre: A Rather Large Stake

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It has come to our attention – and really, how could it not? – that Northcape Capital Ltd. has acquired a further 36,862 shares in MercadoLibre (MELI +1.40%). This isn’t just a purchase; it’s a statement. A statement, roughly equivalent to shouting “I quite like Latin American e-commerce!” into the vast, echoing void of the global financial markets. (Though, admittedly, a more financially sound way of expressing that sentiment.) The filing date, January 20, 2026, seems…arbitrary, but then most dates do when you consider the sheer, improbable trajectory of the universe.

A Significant Accumulation

According to the aforementioned filing, Northcape Capital increased its position in MercadoLibre during the fourth quarter. The value of this increase? A rather substantial $51.45 million. This wasn’t simply a rounding error on a spreadsheet. It was a deliberate act of capital allocation. (Capital allocation, for those unfamiliar, is what happens when people with money decide where to put it. A surprisingly complex process, involving charts, graphs, and a disturbing amount of optimism.) The combined effect of share purchases and, let’s be honest, the stock actually increasing in value, has resulted in a rather noticeable bulge in Northcape’s portfolio.

The Weight of Things

Currently, MercadoLibre constitutes a rather significant 27.5% of Northcape’s 13F reportable AUM (Assets Under Management – a term that sounds far more impressive than it actually is. It’s just money, really.). This is not a casual fling; it’s a serious commitment. A commitment that says, “We believe in the future of online shopping in Latin America, and we’re willing to put a considerable amount of capital behind that belief.” (Which is a perfectly reasonable thing to do, provided one has the capital to do so.)

As of the filing, the top holdings look like this:

  • NASDAQ:MELI: $238.37 million (27.5% of AUM)
  • NYSE:AMOV: $220.22 million (25.4% of AUM)
  • NYSE:HDB: $184.19 million (21.2% of AUM)
  • NYSE:ITUB: $96.14 million (11.1% of AUM)
  • NYSE:PAC: $51.59 million (6.0% of AUM)

As of January 20, 2026, MercadoLibre shares were trading at $2,034.82, a 10.9% increase over the previous year. However, and this is a crucial ‘however’, it has underperformed the S&P 500 by 2.52 percentage points. (A minor setback, perhaps? Or a harbinger of doom? The market, as always, remains stubbornly unhelpful in providing definitive answers.)

A Brief Company Overview (Because Apparently, We Need One)

Just in case you’ve been living under a rock (a perfectly valid lifestyle choice, all things considered), MercadoLibre is, in essence, the Amazon of Latin America. But with more…passion. And possibly more paperwork. (Latin America is known for its paperwork. It’s a cultural thing.)

Metric Value
Revenue (TTM) $26.19 billion
Net Income (TTM) $2.08 billion
Price (as of market close 2026-01-20) $2,034.82
One-Year Price Change 10.92%

What Does This All Mean for the Discerning Investor?

Let’s address the elephant in the room – or, rather, the slightly overvalued stock. Northcape’s acquisition of MercadoLibre isn’t just a transaction; it’s a signal. A signal that says, “We believe in the long-term potential of this company, even if it occasionally dips below our expectations.” (Which, let’s be honest, happens to all companies eventually.)

Over the past three years, MercadoLibre stock has delivered a total return of 85%, equating to a compound annual growth rate (CAGR) of 22.8%. This is, to put it mildly, rather good. It’s even better than the S&P 500’s CAGR of 21.3% over the same period. (A victory, however small, in the ongoing battle against market averages.)

Of course, macroeconomic headwinds and intensifying competition are starting to weigh on MercadoLibre. (As they inevitably do. The universe is fundamentally opposed to uninterrupted success.) However, for investors eyeing the Latin American e-commerce market, MercadoLibre remains a compelling option. It’s a company with consistent growth, solid profitability, and a rather impressive ability to navigate the complexities of a rapidly evolving market. (And that, my friends, is worth a closer look.)

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2026-01-21 18:23