Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -3.22% net compared to 0.24% return for the Russell 2000 Growth Index. Fears of recession and inflation affected the US stock market in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds highlighted stocks like Ranpak Holdings Corp. (NYSE:PACK) in the Q3 2022 investor letter. Headquartered in Concord Township, Ohio, Ranpak Holdings Corp. (NYSE:PACK) provides protective product packaging solutions. On December 7, 2022, Ranpak Holdings Corp. (NYSE:PACK) stock closed at $5.59 per share. One-month return of Ranpak Holdings Corp. (NYSE:PACK) was -3.06% and its shares lost 84.21% of their value over the last 52 weeks. Ranpak Holdings Corp. (NYSE:PACK) has a market capitalization of $458.42 million.
Meridian Funds made the following comment about Ranpak Holdings Corp. (NYSE:PACK) in its Q3 2022 investor letter:
“Ranpak Holdings Corp. (NYSE:PACK) is a manufacturer of paper-based protective packaging solutions. Among the many things we like about Ranpak is the sustainability of its products which are environmentally friendly compared to plastic, foam, and other packaging materials. We also like its consumable business model and attractive unit economics. Ranpak’s stock fell during the quarter after management issued a cautious near-term growth outlook, citing inflation, weakening consumer confidence, and a slowdown in e-commerce spending as factors that could challenge earnings in the coming months. Supply chain disruptions, higher paper prices, and difficult year-over-year comparisons contributed to a 4% decline in second-quarter net revenue and a 29% decline in EBITDA compared to the same period last year. Exposure to Europe, where the economy has deteriorated rapidly, added to the negative sentiment on the stock. Our longer-term growth outlook for Ranpak remains positive. We believe the trend in which corporations are minimizing their plastic use continues to bode well for Ranpak’s more sustainable packaging products. We also believe the company’s automation technology could be a game-changer for businesses looking for an alternative to slower, more expensive manual packaging processes. During the quarter, we added to our position in Ranpak.”
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Ranpak Holdings Corp. (NYSE:PACK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Ranpak Holdings Corp. (NYSE:PACK) at the end of the third quarter, which was 10 in the previous quarter.
We discussed Ranpak Holdings Corp. (NYSE:PACK) in another article and shared the list of packaging companies in USA. In addition, please check out our hedge fund investor letters Q3 2022 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.
