Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. During the final months of the year, optimism prevailed due to news of reducing inflation and the potential for lower interest rates in 2024. The fund returned 13.64% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s12.75% return. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Meridian Small Cap Growth Fund featured stocks like CarGurus, Inc. (NASDAQ:CARG) in the Q4 2023 investor letter. Headquartered in Cambridge, Massachusetts, CarGurus, Inc. (NASDAQ:CARG) is an online automotive marketplace. On March 27, 2024, CarGurus, Inc. (NASDAQ:CARG) stock closed at $23.00 per share. One-month return of CarGurus, Inc. (NASDAQ:CARG) was 5.26%, and its shares gained 28.06% of their value over the last 52 weeks. CarGurus, Inc. (NASDAQ:CARG) has a market capitalization of $2.471 billion.
Meridian Small Cap Growth Fund stated the following regarding CarGurus, Inc. (NASDAQ:CARG) in its fourth quarter 2023 investor letter:
“CarGurus, Inc. (NASDAQ:CARG) is at the forefront of the online automobile sales industry, operating a web-based retail marketplace and holding a 50% stake in an online auction wholesaler. The marketplace business is unique in that it presents buyers with an unbiased list of available vehicles ranked on their value— a combination of the price and quality of the vehicle. Meanwhile, dealers are drawn to CarGurus.com’s attractive pricing and extensive suite of ancillary services. During the quarter, the stock appreciated as the company reported accelerating marketplace growth, up 8% from 4% in the previous quarter. The acceleration was primarily driven by rising inventory on dealer lots, which is forcing dealers to advertise to stimulate demand for the first time post-COVID. CarGurus also has been successful in passing through price increases, as price breaks provided during COVID are coming off the books and the company is the lowest cost source of leads for dealers. The company announced during the quarter that it would be buying the remaining stake in CarOffer, its auction-based wholesaling business. We believe the price, which is based on a depressed 2023 valuation, provides excellent value for CarGurus shareholders. We continue to believe in the long-term fundamentals of the company and maintained our position during the quarter.”
An online automotive marketplace platform with a large selection of car listings.
CarGurus, Inc. (NASDAQ:CARG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, CarGurus, Inc. (NASDAQ:CARG) was held by 23 hedge fund portfolios, compared to 26 in the previous quarter, according to our database.
We discussed CarGurus, Inc. (NASDAQ:CARG) in another article and shared Meridian Funds’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
