Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. election results, inflation, and interest rate direction influenced markets in the quarter. This led 7.1% gain in large cap growth stocks, resulting in 33.4% annual gains. Small cap growth stocks initially surged post-election, but US Federal Reserve’s measured approach to rate cuts in 2025 and strong economic data reversed these gains. The market’s initial optimism had given way to a more cautious perspective by the end of the year. The fund returned 2.85% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Meridian Small Cap Growth Fund emphasized stocks such as Angi Inc. (NASDAQ:ANGI). Angi Inc. (NASDAQ:ANGI) operates an online platform that connects home service professionals with consumers. The one-month return of Angi Inc. (NASDAQ:ANGI) was -8.00%, and its shares lost 38.78% of their value over the last 52 weeks. On March 10, 2025, Angi Inc. (NASDAQ:ANGI) stock closed at $1.61 per share with a market capitalization of $802.505 million.
Meridian Small Cap Growth Fund stated the following regarding Angi Inc. (NASDAQ:ANGI) in its Q4 2024 investor letter:
“Angi Inc. (NASDAQ:ANGI) operates an online marketplace connecting homeowners with local, pre-screened home service professionals. During the quarter, Angi’s stock price declined following continued revenue challenges amid its strategic business refocusing. Despite strong underlying metrics, including service professional retention and net promoter scores, uncertainty surrounding new regulatory rules and the decision by its majority owner to spin off its holdings, weighed on the stock. We view these challenges as temporary and remain committed to a patient, long term approach. Angi’s efforts to improve lead quality and expand EBITDA margins are promising, and we believe downside risks are limited. We slightly trimmed our position during the quarter and will continue to monitor progress.”
A professional tradesperson working in the home of a customer, providing quality service.
Angi Inc. (NASDAQ:ANGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Angi Inc. (NASDAQ:ANGI) at the end of the fourth quarter compared to 14 in the third quarter. While we acknowledge the potential of Angi Inc. (NASDAQ:ANGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.