Why a $13 Million MercadoLibre Exit Means for Investors After a 25% Run
Key Points
New York City-based Overbrook Management sold its entire position in MercadoLibre during the fourth quarter.
The position was previously worth about $13.07 million.
MercadoLibre accounted for 2.35% of fund AUM in the previous quarter, marking a notable portfolio shift.
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New York City-based Overbrook Management disclosed a full exit from MercadoLibre (NASDAQ:MELI) in a Friday SEC filing, selling 5,592 shares for an estimated $13.07 million based on quarterly average pricing.
What Happened
According to an SEC filing released Friday, Overbrook Management Corp sold all of its 5,592 shares of MercadoLibre during the fourth quarter. The estimated value of the transaction is $13.07 million, calculated using the average share price for the period.
What Else to Know
Top holdings after the filing:
- NASDAQ:NVDA: $59.15 million (10.21% of AUM)
- NASDAQ:GOOGL: $45.35 million (7.83% of AUM)
- NASDAQ:MSFT: $42.33 million (7.31% of AUM)
- NASDAQ:AVGO: $39.41 million (6.80% of AUM)
- NASDAQ:META: $38.16 million (6.59% of AUM)
As of Thursday, MELI shares were priced at $2,179.80, up 25.35% over the past year and outperforming the S&P 500 by about 5.93 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Thursday) | $2,179.80 |
| Market Capitalization | $110.31 billion |
| Revenue (TTM) | $26.19 billion |
| Net Income (TTM) | $2.08 billion |
Company Snapshot
- MercadoLibre offers online commerce platforms, digital payments, fintech solutions, logistics, classifieds, advertising, and online storefront services across Latin America.
- The company generates revenue primarily through transaction fees on its marketplace, fintech services (Mercado Pago), logistics (Mercado Envios), lending (Mercado Credito), and advertising solutions.
- It serves individuals, merchants, and businesses seeking e-commerce, financial services, and digital retail infrastructure in Latin American markets.
MercadoLibre, Inc. is a leading Latin American e-commerce and fintech platform. The company leverages a diversified ecosystem that integrates marketplace, payments, logistics, and digital financial services, enabling seamless commerce and financial inclusion across its core geographies. MercadoLibre's comprehensive service suite and technology-driven approach provide a significant competitive advantage in high-growth, underpenetrated markets.
What this transaction means for investors
This move matters less because of what was sold and more because of what now fills the space. Overbrook’s portfolio is already dominated by mega-cap U.S. compounders, with Nvidia, Alphabet, Microsoft, Broadcom, and Meta each commanding roughly 6.5% to 10% of assets. In that context, trimming a high-quality international winner looks like it could be a deliberate rebalancing toward names with deeper liquidity and closer ties to U.S. growth cycles.
That framing is important because MercadoLibre’s fundamentals remain strong. In the most recent quarter, the company reported $7.4 billion in revenue, up 39% year over year, with operating income of $724 million and net income of $421 million. Payments volume climbed to $71.2 billion, and fintech monthly active users reached 72 million, reinforcing the scale of the ecosystem. Those numbers suggest execution, not erosion.
But portfolio management is not about loving every great business forever. After a 25% one-year gain and meaningful multiple expansion, the opportunity cost matters. For a fund already heavy in high-growth tech, reducing exposure to a volatile emerging-markets leader can be a way to control risk, not abandon conviction.
Glossary
13F reportable assets: Investment holdings that institutional managers must disclose quarterly to the SEC under Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Quarter-end position: The number of shares or value of a holding at the end of a fiscal quarter.
Portfolio shift: A significant change in the composition or allocation of a fund's investment holdings.
Stake: The ownership interest or share held in a company by an investor or fund.
Fintech: Financial technology; innovative digital solutions for banking, payments, lending, and related financial services.
Transaction fees: Charges collected by a company for processing sales or payments on its platform.
Marketplace: An online platform where buyers and sellers transact goods or services.
Logistics: The management of the flow and delivery of goods from sellers to buyers.
Digital payments: Electronic methods for transferring money or making purchases online or via mobile devices.
Lending: Providing loans or credit to individuals or businesses, often as part of a financial services platform.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, MercadoLibre, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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