Investment Manager Doubles Down on MercadoLibre With $51 Million Purchase

Northcape Capital Ltd disclosed a buy of 36,862 additional MercadoLibre (NASDAQ:MELI) shares in its latest SEC filing dated January 20, 2026.

What Happened

According to a January 20, 2026, SEC filing, Northcape Capital Ltd increased its position in MercadoLibre by 36,862 shares during the fourth quarter. The overall value of the position climbed by $51.45 million, a change driven by both trading activity and share price appreciation.

What Else to Know

MercadoLibre now represents 27.5% of Northcape's 13F reportable AUM.

Top holdings after the filing:

• 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 priced at $2,034.82, up 10.9% over the past year; shares have underperformed the S&P 500 by 2.52 percentage points.

Company Overview

Company Snapshot

• Offers an online marketplace, digital payments (Mercado Pago), logistics (Mercado Envios), consumer and merchant credit, investment products, advertising, and classified listings across Latin America.
• Generates revenue primarily through transaction fees, payment processing, credit products, logistics services, and advertising on its digital platforms.
• Serves businesses, merchants, and individual consumers, with a focus on Latin American markets.

MercadoLibre, Inc. is the leading e-commerce and fintech platform in Latin America, leveraging a broad ecosystem that integrates online retail, payments, logistics, and credit services. The company’s scale, technology infrastructure, and network effects provide a significant competitive advantage in high-growth, underpenetrated markets. MercadoLibre’s diversified business model enables it to capture multiple revenue streams and adapt to evolving digital commerce trends in the region.

What This Transaction Means For Investors

The recent purchase by Northcape Capital, an Australian investment manager, of MercadoLibre stock could be significant. Here’s what retail investors need to know.

First off, Northcape’s acquisition of MercadoLibre during the fourth quarter (the three months ending on Dec. 31, 2025) was quite large. Northcape added about 37,000 shares of MercadoLibre, bringing its total holdings of the stock to nearly 117,000 shares, valued at approximately $238 million. MercadoLibre is now Northcape’s largest overall holding, representing 27.5% of its total AUM.

As for MercadoLibre itself, the stock cooled off in the second half of 2025, after a sharp move higher at the start of the year. Nevertheless, over the last three years, MercadoLibre stock has performed well, logging a total return of 85%, equating to a compound annual growth rate (CAGR) of 22.8%. That’s ahead of the S&P 500, which has generated a CAGR of 21.3% over the same period.

At any rate, macroeconomic headwinds and intensifying competition have started to weigh on MercadoLibre in recent months. However, for investors eyeing the Latin American e-commerce market, MercadoLibre is still worth considering, given its consistent growth and solid profitability.

Jake Lerch has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool recommends Grupo Aeroportuario Del PacíficoB. De C.v. and HDFC Bank. The Motley Fool has a disclosure policy.