Company Overview - Generation Investment Management released its "Global Equity Strategy" fourth quarter 2025 investor letter, emphasizing the importance of patient, quality-focused investing in a market shaped by uncertainty and distortion [1] - The firm believes its portfolio is well-positioned for future success, as current trends driving underperformance will ultimately lead to better results [1] - As of December 31, 2025, the Global Equity strategy has total assets under management of USD 21.0 billion [1] Market Insights - The research indicates that sectors in AI will provide long-term value, especially as global computing demands increase, potentially tripling if a third of internet users engage with AI via voice for 20 minutes daily [1] - The market currently penalizes strong companies that do not participate in the 'beat and raise' game [1] Focus on MercadoLibre, Inc. - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a leading online commerce platform in Latin America, with a market capitalization of USD 82.09 billion [2] - The stock closed at $1,619.20 per share on March 30, 2026, with a one-month return of -5.53% and a 52-week loss of 15.45% [2] - Generation Investment's investment in MercadoLibre began over a decade ago, believing it could become the core digital infrastructure for Latin America, and considers it an outstanding business with deep moats [3] Leadership and Company History - MercadoLibre was founded in 1999 by Marcos Galperin, who led the company for 25 years, making it Latin America's most valuable listed company with a market cap exceeding USD 100 billion [4] - Galperin stepped down as CEO at the end of 2025 but remains as executive chairman, while Ariel Szarfsztejn, who joined in 2017, is the new CEO [4] Operational Highlights - MercadoLibre operates in 18 countries, with strong positions in Brazil, Argentina, and Mexico, where independent merchants list on the platform and the company takes a commission [5] - In 2024, Mercado Envios, its logistics solution, handled 1.8 billion shipments, roughly doubling its 2020 figures [5]

Core Insights - Polen Capital's "Polen International Growth Strategy" experienced flat returns in 2025, contrasting with the highest returns in foreign equity markets in over a decade, attributed to market preference for cyclically sensitive businesses [1] - The strategy reported a Q4 return of -2.21% (gross) and -2.52% (net), while the MSCI ACWI (ex-USA) returned 5.05% [1] - For the full year 2025, the strategy returned 0.68% (gross) and -0.52% (net), compared to a 32.39% return for the index [1] Company Performance - MercadoLibre, Inc. (NASDAQ:MELI) was identified as a leading detractor in the Polen International Growth Strategy, with a one-month return of -13.98% and a 52-week decline of 16.35% [2][3] - As of March 17, 2026, MercadoLibre's stock closed at $1,728.14 per share, with a market capitalization of $87.61 billion [2] - The decline in MercadoLibre's stock was linked to a slight decrease in operating margin due to investments in free shipping, marketing, and credit products, despite a topline growth of over 35% [3] Hedge Fund Interest - MercadoLibre, Inc. ranked 37th among the 40 most popular stocks among hedge funds heading into 2026, with 113 hedge fund portfolios holding the stock at the end of Q4, an increase from 109 in the previous quarter [4] - While acknowledging MercadoLibre's potential, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]

Fund Performance - Baron Global Opportunity Fund reported a 6.5% return in Q4 2025, outperforming the MSCI ACWI Index which returned 3.3% and the MSCI ACWI Growth Index which gained 2.8% [1] - For the full year 2025, the Fund achieved a 27.5% return, exceeding the benchmarks' returns of 22.3% and 22.4% [1] - The Fund ended the year with 42 investments, an increase from 38 the previous year, with 35 stocks making up 99.3% of its net assets [1] MercadoLibre, Inc. Overview - MercadoLibre, Inc. (NASDAQ:MELI) is identified as a leading detractor for the Fund, with its stock closing at $1,769.03 on March 04, 2026 [2] - The one-month return for MercadoLibre was -13.06%, and it experienced a 13.51% decline over the last three months [2] - The company has a market capitalization of $89.685 billion [2] Challenges Faced by MercadoLibre - MercadoLibre's shares declined by 13.8% in Q4 2025, although they finished the year up 18.5% [3] - Concerns regarding margin pressure and increased competition, particularly from Amazon and Shopee in Brazil, have affected investor sentiment [3] - The company expanded free shipping thresholds and increased marketing spend, raising fears of near-term margin compression [3] - There are worries that advancements in agentic AI could hinder GMV growth and pressure take rates, impacting advertising revenue [3] - Economic volatility in Argentina, a key market for MercadoLibre, has also raised concerns about profit growth [3] - Despite these challenges, the company is viewed as well-positioned to capture significant market share in Latin America's e-commerce and fintech sectors due to its logistics capabilities and brand trust [3]

Core Insights - Loomis Sayles Global Growth Fund reported a return of -3.05% in Q4 2025, underperforming the MSCI ACWI Index Net which returned 3.29% [1] Company Overview - MercadoLibre, Inc. (NASDAQ:MELI) is the largest online commerce platform in Latin America, offering a comprehensive ecosystem of six integrated e-commerce services [3] - The company operates in 18 countries, covering a significant portion of Latin America's GDP, and has 218 million active users, representing over 45% of the region's estimated 480 million total internet users [3] Financial Performance - MercadoLibre, Inc. had a market capitalization of $101.749 billion as of February 12, 2026 [2] - The company reported that commerce and related services accounted for approximately 59% of its net revenue, while payments and fintech solutions made up about 41% [3] Market Position and Growth Potential - MercadoLibre benefits from strong competitive advantages, including its extensive network, brand recognition, and understanding of local markets, which contribute to its leadership position [3] - The company is well-positioned for sustained growth over the next decade, driven by the increasing growth of e-commerce in Latin America, improved internet access, and enhanced credit availability [3]

Group 1: Market Overview - Global equity markets showed strong performance in Q4 2025, supported by easing inflation and positive economic data [1] - The Hardman Johnston Global Equity Strategy achieved a return of 2.91%, while the MSCI AC World Net Index gained 3.29% [1] - The Financials and Consumer Staples sectors contributed positively to the strategy's performance, whereas the Industrials and Consumer Discretionary sectors detracted from it [1] Group 2: Company Focus - MercadoLibre, Inc. - MercadoLibre, Inc. (NASDAQ:MELI) was identified as a significant detractor in the fourth quarter, with shares trading between $1,723.90 and $2,645.22 over the past year [2] - As of January 26, 2026, MercadoLibre's stock closed at $2,212.62, reflecting a one-month return of 9.49% but a three-month decline of 3.38% [2] - The company has a market capitalization of $112.174 billion [2] Group 3: Competitive Landscape - Increased competitive pressure from Amazon has impacted MercadoLibre's performance, particularly in the Consumer Discretionary sector [3] - Amazon's new initiatives, including promotions on fulfillment fees and reduced commissions for new merchants, pose challenges to MercadoLibre [3] - Despite the competition, MercadoLibre's strong logistics network and ecosystem advantages are expected to maintain its leadership position in Brazilian e-commerce [3] Group 4: Strategic Investments - MercadoLibre is committed to reinvesting in its core offerings, which includes lowering free shipping thresholds and expanding its credit card portfolio [3] - These investments are anticipated to weigh on near-term margins but have historically strengthened the company's competitive position [3]

Core Insights - Janus Henderson Forty Fund reported an 8.38% return in Q3 2025, underperforming the Russell 1000 Growth Index which returned 10.51% [1] - Stock selection in the healthcare sector positively impacted the fund's performance, while the consumer discretionary sector negatively affected it [1] Company Overview - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a significant stock in the fund's portfolio, operating as an online commerce platform and financial technology provider in Latin America [2][3] - The stock experienced a one-month return of -1.42% but gained 10.74% over the past 52 weeks, closing at $2,019.81 with a market capitalization of $102.399 billion on December 01, 2025 [2] Competitive Landscape - MercadoLibre faces increased competition from major players like Amazon and Shopee, raising concerns about its margins and profitability [3] - Despite these challenges, the company is viewed as a dominant operator in a region where e-commerce and financial technology are still developing [3] Hedge Fund Interest - As of the end of Q3 2025, 109 hedge fund portfolios held MercadoLibre, a decrease from 116 in the previous quarter [4] - The company reported a 39% year-on-year growth, indicating its potential as an investment, although some analysts suggest that certain AI stocks may offer better upside potential with lower risk [4]

Core Viewpoint - Baron Fifth Avenue Growth Fund's performance in Q3 2025 lagged behind major indices, with a gain of 5.7% compared to 10.5% for the Russell 1000 Growth Index and 8.1% for the S&P 500 Index [1] Fund Performance - The fund's year-to-date (YTD) performance is up 14.4%, while the Russell 1000 Growth Index and S&P 500 Index are up 17.2% and 14.8%, respectively [1] Key Holdings - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a significant stock in the fund's portfolio, despite a one-month return of -10.46% and a 52-week gain of 7.00% [2] - As of December 01, 2025, MercadoLibre's stock closed at $2,064.55, with a market capitalization of $104.667 billion [2] MercadoLibre Performance Analysis - MercadoLibre's shares declined by 10.6% due to macroeconomic and competitive pressures, despite strong quarterly results: GMV increased by 21% year-on-year, total payments volume rose by 39%, and revenues grew by 34% [3] - The decline in MercadoLibre's stock is attributed to a sell-off in Argentine assets, which significantly impacts its revenue, as Argentina accounts for approximately 20% of total revenues and 40% of direct group contribution [3] - The company faces intensified competition from Amazon, which has introduced new promotional rates for sellers in Brazil [3] - Despite these challenges, the company is viewed as well-positioned to capture growth in Latin America's e-commerce and fintech markets due to its scale, brand trust, and ecosystem [3] Hedge Fund Interest - MercadoLibre, Inc. was held by 109 hedge fund portfolios at the end of Q3 2025, a decrease from 116 in the previous quarter [4] - The company reported a 39% year-on-year growth in Q3 2025, but some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - Loomis Sayles Global Growth Fund achieved a return of 7.59% in Q3 2025, slightly below the MSCI ACWI Index Net return of 7.62% [1] - The fund focuses on investing in high-quality businesses with sustainable competitive advantages, particularly those trading at significant discounts to intrinsic value [1] Company Overview: MercadoLibre, Inc. - MercadoLibre, Inc. is the largest online commerce platform in Latin America, offering a comprehensive ecosystem of six integrated e-commerce services [3] - The company reported that commerce and related services accounted for approximately 59% of net revenue, while payments and fintech solutions made up about 41% [3] - As of November 21, 2025, MercadoLibre's stock closed at $1,951.78, with a market capitalization of $98.95 billion [2] Market Position and Growth Potential - MercadoLibre operates in 18 countries, covering a significant portion of Latin America's GDP, and has 218 million active users, representing over 45% of the region's estimated 480 million total internet users [3] - The company is expected to benefit from strong competitive advantages, including its network, brand, and local market understanding, which contribute to its leadership position [3] - Continued growth in internet access and credit availability, along with ongoing investments to enhance online transaction convenience, position MercadoLibre for sustained growth driven by the e-commerce sector in Latin America [3]

Group 1: Sands Capital Global Growth Strategy Overview - Sands Capital released its second-quarter 2025 investor letter, highlighting a flexible approach to identify promising growth companies globally [1] - The Global Growth portfolio achieved a return of 21.7% in the quarter, outperforming the MSCI ACWI index, which returned 11.5% [1] - This quarter's performance marked the fourth best since the fund's inception in 2008, both in absolute and relative terms [1] Group 2: MercadoLibre, Inc. (NASDAQ:MELI) Performance - MercadoLibre, Inc. is recognized as the leading ecommerce and fintech ecosystem in Latin America, with a strong quarter surpassing revenue and operating income estimates [3] - The stock had a one-month return of 2.32% and a 52-week gain of 13.67%, closing at $2,390.14 per share with a market capitalization of $121.174 billion on September 16, 2025 [2] - In the second quarter of 2025, MercadoLibre reported over 30% year-on-year revenue growth and a record operating income of $825 million [4] Group 3: Strategic Investments and Market Position - Despite representing less than 5% of the total retail market in the region, MercadoLibre is investing in key areas such as marketplace, logistics, loyalty, and wallet to capture growth opportunities [3] - These investments may pressure near-term profitability but are expected to reinforce competitive advantages and support long-term growth [3] - The number of hedge funds holding MercadoLibre increased from 108 to 116 in the second quarter of 2025, indicating growing interest [4]