Janus Henderson Investors, an investment management company, released its “Forty Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities surged in the third quarter on positive corporate earnings news and hopes for Federal Reserve (Fed) rate cuts. The fund returned 8.38% in the third quarter, compared to the Russell 1000 Growth Index’s 10.51% return. Stock selection in the healthcare sector contributed to the relative performance of the fund in the quarter, while ...

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]