James Hambro & Partners Significantly Trims MercadoLibre Stake

James Hambro & Partners LLP has substantially reduced its exposure to MercadoLibre (MELI), selling 28,631 shares during the first quarter of 2026. According to a recent SEC filing, the estimated value of the transaction was approximately $55.23 million, based on average closing prices from January through March. The divestment reflects a period of volatility for the Latin American e-commerce and fintech giant. The fund's total position value dropped by $62.50 million quarter-over-quarter, a decline driven by both the active share sale and negative stock price movement. Following the sale, the firm retains 16,879 shares valued at $29.18 million, which now accounts for 1.14% of the fund's reportable assets under management. MercadoLibre is currently navigating a challenging operational landscape, facing stiff competition from global entities such as Amazon and Sea Limited. Financial data highlights a growing concern regarding the company's credit portfolio; provisions for doubtful accounts surged by 66% in 2025, significantly outpacing the company's 39% revenue growth during the same period. This disparity resulted in a modest net income increase of only 5%. To counter these headwinds, MercadoLibre has implemented margin cuts to pressure competitors and is integrating AI-driven evaluation tools to tighten loan limits and manage credit risk. While the stock has declined 30% from its peak, the company continues to leverage its integrated logistics and payment infrastructure to maintain its market lead in Latin America.