| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.7% | -0.4% | -6.4% |
| 2025 |
|---|
| -6.3% |
The Meridian Growth Fund returned -0.39% net during Q4 2025, underperforming the Russell 2500 Growth Index which returned 0.33%. The fund's investment approach centers on high-quality businesses with recurring revenue and sustainable competitive advantages, prioritizing risk management over return maximization. Healthcare was the portfolio's largest allocation and top-performing sector, with the manager maintaining an overweight position as they view the sector as undervalued after four years of underperformance. The fund's quality bias created headwinds as lower-quality stocks outperformed, while a shift toward lower-momentum exposures provided modest tailwinds. Key detractors included Certara, Doximity, and Remitly due to guidance disappointments, while contributors included Globus Medical, Tandem Diabetes Care, and Exact Sciences. Looking ahead, the manager is monitoring monetary policy trajectory and AI investment sustainability while maintaining focus on companies with durable competitive advantages and strong balance sheets to navigate market uncertainty and create long-term value.
The fund focuses on high-quality businesses with recurring revenue and sustainable competitive advantages while prioritizing risk management over return opportunity, constructing a resilient portfolio capable of mitigating losses during volatile markets while participating in gains during robust conditions.
The manager maintains a consistent investment approach focused on high-quality businesses with durable competitive advantages, strong balance sheets, and clear visibility into sustainable earnings growth. They believe these companies are best positioned to navigate both speculative market excesses and broader economic uncertainty, creating long-term value as market exuberance and short-term momentum eventually subside.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | ABT, CERT, CHDN, COO, DOCS, DT, EXAS, GFS, GMED, RELY, SAIC, TNDM, TPB, TRMB, VCYT | growth, healthcare, Medical Devices, Quality, small caps, technology | - | Healthcare was the portfolio's largest allocation and top-performing sector for the quarter, with the fund maintaining an overweight position. The manager views healthcare as undervalued… |
| Oct 24 2025 | 2025 Q3 | ALGN, ALIT, HALO, MDGL, SPT, ZD | capital goods, healthcare, semiconductors, SMID, valuation |
ALIT SPT ALGN MDGL HALO ZD |
A quality-oriented SMID strategy trailed as high-beta, high-valuation names outperformed amid AI-infrastructure exuberance. Underweights in industrial capital goods and speculative semis, plus a healthcare overweight,… |
| Aug 2 2025 | 2025 Q2 | COO, CW, DKNG, FSS, HALO, ZD | Competitive Advantage, Compounding, growth, Recurring Revenue, volatility |
ZD HALO COO |
The letter emphasizes investing in companies with sustainable growth driven by recurring revenue and competitive advantages. Management prioritizes downside protection and valuation discipline alongside growth.… |
| Mar 31 2025 | 2025 Q1 | CARG, HALO, OKTA, RBA, TNDM, ZD | - | - | - |
| Feb 10 2025 | 2024 Q4 | CARG, DOCS, RELY, ST, STE, TMDX | - | - | - |
| Sep 30 2024 | 2024 Q3 | COO, DOCS, GFS, OKTA, SMAR, ZD | - | - | - |
| Jun 30 2024 | 2024 Q2 | AGIO, ALIT, RELY, TMDX. CHWY, TRMB | - | - | - |
| Apr 15 2024 | 2024 Q1 | ACVA, IRDM, QDEL, RBRI, SHC, TRMB | - | - | - |
| Dec 31 2023 | 2023 Q4 | CARG, FOXF, GOOS, HSIC, MATX | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Jun 30 2023 | 2023 Q2 | ACTA, CARG, CERT, ST, STE, ZD | - | - | - |
| Mar 31 2023 | 2023 Q1 | ACVA, ARVN, CCCC, CCSI, FTDR, ST | - | - | - |
| Jan 31 2023 | 2022 Q4 | 76J GR, GNRC, MMSI, ON, SH5 GR, SYNH | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
| 2025 Q3 |
Mid Caps |
|
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 24, 2025 | Fund Letters | Chad Meade | ALIT | Alight, Inc. | Information Technology | Data Processing & Outsourced Services | Bear | NYSE | Bookings, deleveraging, Execution, guidance, Outsourcing, Retention | Login |
| Oct 24, 2025 | Fund Letters | Chad Meade | SPT | Sprout Social, Inc. | Information Technology | Application Software | Bull | NASDAQ | enterprise, guidance, Margins, recurring revenue, Retention, SaaS | Login |
| Oct 24, 2025 | Fund Letters | Chad Meade | ALGN | Align Technology, Inc. | Health Care | Health Care Supplies | Bear | NASDAQ | Asp, Competition, Demand, Dental, Mix, Pricing | Login |
| Oct 24, 2025 | Fund Letters | Chad Meade | MDGL | Madrigal Pharmaceuticals, Inc. | Health Care | Biotechnology | Bull | NASDAQ | GLP-1, growth, Launch, MASH, pipeline, valuation | Login |
| Oct 24, 2025 | Fund Letters | Chad Meade | HALO | Halozyme Therapeutics, Inc. | Health Care | Biotechnology | Bull | NASDAQ | drug delivery, FCF, guidance, Partners, platform, royalties | Login |
| Oct 24, 2025 | Fund Letters | Chad Meade | ZD | Ziff Davis, Inc. | Communication Services | Digital Media | Bull | NASDAQ | cloud services, digital media, FCF, M&A, Margins, organic growth | Login |
| Aug 2, 2025 | Fund Letters | Chad Meade | ZD | Ziff Davis Inc. | Communication Services | Interactive Media & Services | Bear | NASDAQ | acquisition, cloud, Digital, growth, media | Login |
| Aug 2, 2025 | Fund Letters | Chad Meade | HALO | Halozyme Therapeutics Inc. | Health Care | Biotechnology | Bear | NASDAQ | Key Catalysts Include Final CMS Ruling And New ENHANZE-Enabled Drug Launches. | Login |
| Aug 2, 2025 | Fund Letters | Chad Meade | COO | The Cooper Companies Inc. | Health Care | Medical Devices | Bear | NASDAQ | Devices, Fertility, growth, healthcare, lenses | Login |
| TICKER | COMMENTARY |
|---|---|
| ABT | Exact Sciences, which was acquired for a significant premium by Abbot Laboratories in November |
| CERT | Certara, Inc. develops software and services that support drug development through biosimulation, modeling how investigational compounds interact at varied dosing levels with organs and other drugs. While the technology remains relatively early in adoption, a large majority of recent FDA-approved drugs used a Certara solution at some point in the development process. During the quarter, the company underperformed due to weaker-than-expected service bookings, which prompted management to slightly lower guidance. However, with the recent appointment of a new CEO who is adopting a more commercially focused strategy, as well as the potential divestiture of a non-core, lower-moat business segment, Certara is positioned to transform into a more focused, pure-play growth company. |
| CHDN | Longer-term holdings such as Churchill Downs increased, outperforming benchmark returns |
| COO | Cooper was a top contributor during the quarter after reporting good operating results and announcing several shareholder-friendly developments. In terms of operating results, the company demonstrated progress in alleviating supply constraints for its premium daily silicone hydrogel contact lenses, announced new private label contract wins in the U.S. and Europe, and delivered innovation in myopia control and multifocal lens platforms. |
| DOCS | An overweight position in Doximity, Inc. (DOCS) detracted from performance. The stock declined following a quarterly earnings report signaling cautious guidance and uncertainty after recent healthcare policy changes. |
| DT | Dynatrace detracted from relative quarterly performance |
| EXAS | The largest single contributor was Exact Sciences, which was acquired for a significant premium by Abbot Laboratories in November, resulting in an +86% return in the quarter for one of our higher-conviction positions. |
| GMED | Globus Medical, Inc. is a medical technology company focused on spine implants and motion preservation solutions. The stock outperformed during the quarter, driven by management's report of a re-acceleration in the core spine business to double-digit growth and evidence of renewed market share gains. Integration and profitability metrics from prior acquisitions are tracking ahead of expectations, and with most integration initiatives substantially complete, the company appears well-positioned to benefit from improved operating leverage in 2026. |
| RELY | Remitly Global, Inc. is a digitally native money transfer firm strategically capturing market share in the cross-border remittance space, competing effectively against established players such as Western Union and MoneyGram. The company has reached a scale that positions it for potentially substantial improvements in profitability going forward. Despite reporting robust quarterly earnings, the stock underperformed during the quarter, influenced by management's guidance indicating a deceleration in revenue growth compared to previous periods. This tempered outlook stems from challenging year-over-year comparisons and, to a lesser extent, immigration-related headwinds affecting remittance volumes. Nevertheless, Remitly continues to expand its market presence even amid a temporarily subdued demand environment. |
| TNDM | Tandem Diabetes Care, Inc. develops advanced insulin delivery technologies for patients with diabetes. Its automated insulin delivery systems are well-positioned to gain share in a sizable and expanding addressable market, where a majority of Type 1 diabetes patients still manage insulin manually. The stock appreciated during the quarter, supported by revenue that exceeded expectations and an encouraging growth outlook. Performance was bolstered by a higher proportion of sales through the pharmacy channel, which offers more favorable economics. With several pipeline products nearing commercialization, Tandem is emerging as an increasingly credible competitor to established insulin delivery platforms. |
| TPB | TPB is trading at a high single-digit free cash flow yield. The nicotine pouch market has exploded, driving dramatic growth in TPB's business. TPB initially guided 2025 nicotine pouch sales to $60-80 million, then raised that to $80-95 million in March, $100-110 million in August, and $125-130 million in November. TPB could generate over $5.00 per share in earnings this year and $6.00+ next year as the market continues to grow. Looking out a few years, if TPB can garner 8% market share in a $12bn+ nicotine pouch market, it would generate approximately $1bn in sales. We think TPB could be worth $200-300 per share in the next few years. |
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