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 Small Cap Growth Fund returned 21.54% in Q2 2026, trailing the Russell 2000 Growth Index's 25.71% return due to factor headwinds from its quality-oriented, lower-beta positioning during a risk-on rally that favored high-beta and high-momentum stocks. Stock selection contributed positively, with top contributors including Hinge Health (musculoskeletal care platform that beat earnings and raised guidance), Definium Therapeutics (clinical-stage biotech with positive Phase 3 results in major depressive disorder), and Veracyte (genomic diagnostics with strong volume growth). Detractors included Tandem Diabetes Care (insulin pump maker facing reimbursement transition uncertainty) and two private positions marked lower in a cautious valuation environment. The fund's investment approach emphasizes high-quality businesses with recurring revenue and sustainable competitive advantages, prioritizing risk management over return opportunity. Looking ahead, the manager monitors Iran conflict trajectory and energy prices as the most significant near-term uncertainty, alongside rising rates and inflation pressures, while noting constructive AI-related capital expenditure creating technology supply chain opportunities.
The Meridian Small Cap Growth Fund invests in high-quality small-cap businesses with recurring revenue, sustainable competitive advantages, and strong management teams, prioritizing risk management and downside protection over maximum return opportunity while constructing a resilient portfolio capable of participating in gains during robust markets and mitigating losses during volatile periods.
The manager is actively monitoring several factors for the remainder of 2026, with the Iran conflict trajectory and energy prices representing the most significant near-term uncertainty. Rising interest rates and mortgage rates driven by persistent inflation and a hawkish Federal Reserve pose additional headwinds to consumers and housing. On a constructive note, aggressive AI-related capital expenditure from hyperscalers continues to create opportunities across the technology supply chain benefiting several portfolio holdings. The tone is cautiously balanced, acknowledging meaningful macro risks while identifying selective opportunities.
As of Jul 28, 2026
Co-managed by Partners Chad Meade and Brian Schaub, CFA, both of whom joined ArrowMark in May 2013 and bring extensive small-cap growth investing experience. Meade previously served as Co-Portfolio Manager and Executive Vice President at Janus Capital Group from 2001 to 2013 and worked as an equity analyst at Goldman Sachs. He graduated summa cum laude with a Bachelor of Science in Finance from Virginia Tech. Schaub serves as both Portfolio Manager and Chief Compliance Officer, providing operational and investment expertise to the fund management process.
The Fund seeks long-term growth of capital by investing primarily in equity securities of small capitalization companies through fundamental, bottom-up research. The investment approach prioritizes risk management over return maximization, focusing on high-quality companies with differentiated business models, strong competitive advantages, and large barriers to entry. The Investment Adviser prioritizes downside risk before potential return and maintains a long-term investment horizon, typically concentrating investments in industrials and healthcare sectors based on security selection rather than sector allocation.
Lead Portfolio Manager & CIO
Moderate Conviction Bullish
Market Conviction
The fund holds a diversified portfolio with top 10 holdings representing only 21.89% of assets (largest position 3.19%), indicating 40+ total positions. Individual positions are named and discussed with specific theses (Tandem's reimbursement transition, Veracyte's volume growth, Definium's Phase 3 results), demonstrating moderate conviction in individual names. However, the broad diversification, emphasis on risk management over return opportunity, and multiple scenario discussions (factor headwinds vs. stock selection) indicate moderate rather than high conviction. The letter is thesis-driven for individual holdings but portfolio-level conviction is tempered by diversification. Score: 0.62 reflects moderate conviction with clear theses but diversified implementation.
Growth Outlook
Market outlook remains above average conviction: The Meridian Small Cap Growth Fund returned 0.90% in Q4 2025, underperforming its benchmark. It remains committed to a downside-protected, quality-biased approach, maintaining a co...
Risk Appetite
Risk appetite posture is moderate conviction: The Meridian Small Cap Growth Fund returned 0.90% in Q4 2025, underperforming its benchmark. It remains committed to a downside-protected, quality-biased approach, maintaining a co...
Capital Deployment
No cash level changes are disclosed in the letter. The manager describes adding to some positions (Hinge Health, Definium, Veracyte as contributors) while others declined (Tandem, Evolve, Skyryse as detractors), suggesting rotation rather than net deployment. The emphasis on 'actively monitoring' for the remainder of 2026 and the cautious forward outlook suggest limited net deployment activity. Without explicit cash percentage changes and given the watchful tone, this appears to be rotation with minimal net capital deployment. Score: +0.05 reflects rotation activity with no clear evidence of net cash deployment or de-risking.
Forward Guidance
Forward guidance signal: The Meridian Small Cap Growth Fund returned 0.90% in Q4 2025, underperforming its benchmark. It remains committed to a downside-protected, quality-biased approach, maintaining a co...
Language Signal
Bullish language includes: powerful recovery, sharp rally, restored risk appetite, strong earnings season, attractive opportunities, expanding, growing, durable, defensible moat, multi-year growth runway, constructive. Bearish language includes: uncertainty, headwinds, pressuring, concerns, constrained, caution, clouded visibility, risk, volatile, detractors, declined. The letter contains more directional bullish language around specific holdings and market recovery, but is tempered by macro risk discussion. Net balance leans mildly positive. Score: +0.25 reflects more bullish than bearish directional language overall.
Perceived Risk
Perceived risk level is evaluated as above average conviction. The Meridian Small Cap Growth Fund returned 0.90% in Q4 2025, underperforming its benchmark. It remains committed to a downside-protected, quality-biased approach, maintaining a co...
Opportunity Density
The manager identifies selective opportunities in specific areas: AI-related capital expenditure creating opportunities across the technology supply chain, strong performance from medical device and biotech holdings, and continued investment in high-quality recurring revenue businesses. However, the emphasis on 'actively monitoring' multiple risk factors and the cautious forward outlook suggests the manager views opportunities as selective rather than abundant. The letter does not characterize the environment as rich with ideas or struggling to find value—it's in between. Score: 0.55 reflects selective opportunities in defined areas requiring careful navigation.
Time Horizon
The fund's investment approach emphasizes 'long-term growth of capital' and the manager discusses 'multi-year growth runway' for Veracyte and 'long-term opportunity' for private positions like Evolve and Skyryse. Specific holdings are described with multi-year theses (Tandem's reimbursement transition as 'long-term positive,' Definium's pipeline 'approaching several pivotal readouts'). However, the letter also discusses near-term catalysts (quarterly earnings, Phase 3 readouts, product launches) and monitors quarterly market dynamics. The time horizon is multi-year but not decade-plus or permanent capital. Score: 0.68 reflects a 2-5 year thesis horizon with some catalyst dependency but willingness to hold through volatility.
Top Conviction Themes
Key Catalysts
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