Soumya Eswaran
3 min read
In This Article:
Polen Capital, an investment management company, released its “Polen Global Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets experienced a surge in volatility in 2025 due to US tariffs, with the "Magnificent 7" falling 15% and semiconductors dropping 19%. U.S. stocks lagged, with international equities surpassing them by nearly 10% due to a weakening dollar and a significant tariff shock after the quarter's close. The Strategy returned -5.18% gross (-5.45 % net) in the quarter compared to the MSCI ACW Index’s -1.32% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Polen Global Growth Strategy 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 14.75%, and its shares gained 50.81% of their value over the last 52 weeks. On May 22, 2025, MercadoLibre, Inc. (NASDAQ:MELI) stock closed at $2,606.01 per share with a market capitalization of $129.564 billion.
Polen Global Growth Strategy stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q1 2025 investor letter:
"MercadoLibre, Inc. (NASDAQ:MELI) is the leading eCommerce and digital payments provider in Latin America. After following it closely for several years, we were pleased to acquire shares at an attractive price. The company boasts a robust business model combining an “Amazon-esque” eCommerce platform—supported by a durably advantaged logistics footprint—and a leading digital wallet for LatAm on and off MercadoLibre.com. These are attractive, competitively advantaged businesses. Advertising remains a nascent opportunity for eCommerce, resembling the Amazon playbook, and we see significant room for growth. eCommerce penetration remains below 15% in LatAm but is gaining share rapidly, and MercadoLibre is expanding its leadership position. Similarly, digital payments are relatively early in their LatAM penetration but gain share due to the shift from cash and checks, whereas MercadoLibre is also gaining share. Founder and CEO Marcos Galperin, who has led the company since its 1999 founding, continues to drive robust execution. We are confident in our investment in MercadoLibre, a business we believe can grow EPS at over 25% for several years."
A customer using their phone to access an online commerce platform.
