James Hambro & Partners LLP has reduced its stake in MercadoLibre (MELI), selling 28,631 shares valued at approximately $55.23 million in the first quarter of 2026. This move decreased the firm’s position in MercadoLibre from 3.3% to 1.14% of its 13F reportable assets under management, reflecting a total decline of $62.50 million in value due to both the sale and the stock’s performance. As of April 21, 2026, MercadoLibre shares were trading at $1,854.18, down nearly 10% year-over-year and significantly underperforming the S&P 500.
This divestment comes as MercadoLibre faces increasing competition and challenges related to its expanding credit portfolio, with provisions for doubtful accounts rising sharply. Despite these hurdles, the company’s integrated business model across e-commerce and fintech continues to offer potential for long-term growth. Investors should note that while Hambro has trimmed its position, it retains some shares, indicating a cautious optimism for recovery.
For market professionals, this development underscores the importance of closely monitoring competitive dynamics and financial health in emerging markets, particularly in the consumer discretionary sector.
Source: fool.com