Loomis Sayles, an investment management company, released its “Global Growth Fund” investor letter for the fourth quarter of 2025.  A copy of the letter can be downloaded here. The Fund prioritizes investments in high-quality companies that possess a lasting competitive advantage and long-term growth drivers, capable of generating attractive cash flow and sustained value for investors. The Fund returned -3.05% in Q4 2025 compared to 3.29% for the MSCI ACWI Index Net. As a patient investor, the firm maintain ...

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]