The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Meridian Hedged Equity Fund returned 4.50% net during Q2 2026, trailing the S&P 500's 15.20% gain as its hedged equity strategy limited participation in a powerful market rebound driven by Middle East de-escalation and AI-fueled semiconductor strength. The Fund maintains approximately 37% of its portfolio unhedged for long-term capital growth, with the remainder employing covered calls for income generation and risk mitigation. Top contributors included MGM Resorts, which benefited from record Las Vegas Strip results and a 15% acquisition premium from a non-binding takeover proposal; Global Foundries, which delivered 300 basis points of margin expansion and announced its first dividend; and ACV Auctions, which exceeded guidance and launched AI-powered dealer solutions. Detractors included Intercontinental Exchange, pressured by competitive threats to perpetual futures, and Chevron, weighed down by M&A capital requirements despite operational recovery. Looking ahead, the manager sees a more constructive backdrop but narrower margin for error, with inflation above target, potential Fed hikes replacing anticipated cuts, and elevated valuations leaving markets dependent on continued earnings delivery from technology companies underwriting an unproven AI capital spending cycle. The manager anticipates volatility and maintains focus on high-quality businesses with durable competitive advantages, strong balance sheets, and attractive valuations.
The Meridian Hedged Equity Fund seeks to construct a durable portfolio that minimizes losses during market downturns while participating in market advances through a combination of long positions in high-quality businesses and selective covered call option writing to generate income and mitigate risk.
Following a powerful second-quarter rebound that carried major indexes back to record highs, the manager enters the second half with a more constructive backdrop but a narrower margin for error. De-escalation in the Middle East has relieved energy-driven pressure, yet inflation remains above target and the Fed's policy path has shifted toward possible hikes rather than cuts. Valuations above longer-term averages, elevated margin debt, and low cash balances leave the market increasingly dependent on continued earnings delivery, particularly from large technology companies underwriting an AI capital spending cycle whose ultimate returns remain unproven. Midterm elections and unresolved trade policy add further uncertainty. The manager anticipates volatility and views it as a potential source of opportunity, maintaining a disciplined approach focused on high-quality businesses with durable competitive advantages.
As of Sep 2, 2026
Clayton Freeman has served as principal manager of the Meridian Hedged Equity Fund since September 3, 2019. Under his management, the fund operates within the broader ArrowMark Partners platform, a privately held, employee-owned investment management firm founded in 2007 and headquartered in Denver, Colorado. ArrowMark specializes in niche and less efficient market segments across public and private credit and equity, leveraged loans, and middle-market commercial real estate finance. The firm manages approximately $18.5 billion in assets as of June 30, 2025, with collaboration serving as the cornerstone of the ArrowMark culture, facilitating cross-discipline collaboration and knowledge-sharing across various asset classes and markets.
The fund seeks to optimize long-term growth of capital while minimizing portfolio volatility through fundamental research and active portfolio construction. The strategy combines quality growth company equity selections with risk-managed covered call option exposures to provide downside protection while maintaining upside participation. The fund maintains a sector-agnostic approach focused on building an 'enduring' portfolio that can mitigate capital losses during turbulent bear market environments and experience upside participation during strong bull markets. At least 80% of net assets are invested in long or short positions in equity securities.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The Fund holds a diversified portfolio with 10 named top holdings representing approximately 26% of total assets (ranging from 2.03% to 3.28% each), suggesting a portfolio of roughly 35-40 total positions. The manager provides detailed, multi-sentence commentary on six individual positions (three contributors, three detractors), explaining specific operational drivers, financial metrics, and catalysts. The language is analytical and specific rather than hedged, with clear thesis articulation for each holding. However, the portfolio is not concentrated—no single position exceeds 3.3%—and the covered call overlay on 63% of the portfolio indicates a risk-managed rather than high-conviction approach. The explanation cites concrete position-level evidence and the score reflects moderate conviction consistent with a diversified, hedged equity strategy. Score: 0.62.
Growth Outlook
Market outlook remains moderate conviction: The Meridian Hedged Equity Fund posted a net return of 0.08% for Q4 2025, underperforming benchmarks due to near-term guidance misses from high-conviction holdings. The fund remain...
Risk Appetite
Risk appetite posture is moderate conviction: The Meridian Hedged Equity Fund posted a net return of 0.08% for Q4 2025, underperforming benchmarks due to near-term guidance misses from high-conviction holdings. The fund remain...
Capital Deployment
The letter provides no information on changes in cash levels, net exposure, or aggregate position sizing during the quarter. The manager discusses individual position performance (contributors and detractors) but does not state whether the Fund added to positions, trimmed holdings, or changed its overall exposure level. The 37% unhedged / 63% covered call split is described as the position 'at the end of the period' with no comparison to prior levels. Without evidence of deployment or de-risking activity, the score defaults to neutral. Score: 0.00.
Forward Guidance
Forward guidance signal: The Meridian Hedged Equity Fund posted a net return of 0.08% for Q4 2025, underperforming benchmarks due to near-term guidance misses from high-conviction holdings. The fund remain...
Language Signal
The letter contains a mix of directional language. Bullish terms include 'constructive backdrop,' 'powerful rebound,' 'record highs,' 'attractive long-term return potential,' and 'opportunity.' Bearish or cautious terms include 'narrower margin for error,' 'unproven,' 'elevated valuations,' 'dependent,' 'uncertainty,' 'volatility,' and multiple references to risks. The balance tilts slightly positive due to the constructive framing of the rebound and opportunity language, but the cautious qualifiers are substantial. Score: +0.15.
Perceived Risk
Perceived risk level is evaluated as above average conviction. The Meridian Hedged Equity Fund posted a net return of 0.08% for Q4 2025, underperforming benchmarks due to near-term guidance misses from high-conviction holdings. The fund remain...
Opportunity Density
The manager describes a 'more constructive backdrop' and states they 'embrace' volatility 'as a potential source of opportunity,' suggesting opportunities exist. However, there is no language indicating a broad or rich opportunity set. The manager does not describe adding multiple new positions, finding compelling ideas across sectors, or characterizing the environment as target-rich. The emphasis is on 'disciplined, bottom-up fundamental research' and 'selective' positioning, which implies opportunities require work to find rather than being abundant. The opportunity discussion is balanced—neither scarce nor plentiful. Score: 0.50.
Time Horizon
The manager explicitly states that 37% of the portfolio is unhedged 'with long-term capital growth the primary objective' and emphasizes 'focusing on high-quality businesses with durable competitive advantages, strong balance sheets, and attractive valuations that can compound returns over the long term.' The language 'long term' appears multiple times. However, the Fund is a liquid, publicly traded equity vehicle with quarterly reporting and a covered call overlay on 63% of the portfolio, which inherently introduces shorter-term option expiration cycles. The manager discusses quarterly performance drivers and near-term catalysts (e.g., acquisition proposals, earnings beats) in detail. This is a multi-year thesis with long-term language, but not a permanent capital or decade-plus structure. Score: 0.70.
Top Conviction Themes
Key Catalysts
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