Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. Early gains in large caps and tech leaders expanded to include other sectors and smaller companies, especially later in the quarter. Large companies outperformed small ones, gaining 10.3% and 5.2%, respectively. In the first quarter, the fund returned 2.25% (net) lagging behind the benchmark, the Russell 2500 Growth Index’s 8.51% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Growth Fund highlighted stocks like Trimble Inc. (NASDAQ:TRMB), in the first quarter 2024 investor letter. Trimble Inc. (NASDAQ:TRMB) provides technology solutions that enable professionals and field mobile workers to improve and streamline their work processes. The one-month return of Trimble Inc. (NASDAQ:TRMB) was -0.29%, and its shares gained 6.24% of their value over the last 52 weeks. On June 25, 2024, Trimble Inc. (NASDAQ:TRMB) stock closed at $55.54 per share with a market capitalization of $13.563 billion.
Meridian Growth Fund stated the following regarding Trimble Inc. (NASDAQ:TRMB) in its first quarter 2024 investor letter:
“Trimble Inc. (NASDAQ:TRMB) is a leading industrial technology company that provides hardware, software, and services primarily to the construction, geospatial, transportation, and agricultural industries. Over the last several years, Trimble has been transitioning toward a subscription-based, recurring revenue model. The stock responded positively in the quarter when it announced the completion of a joint venture allowing Trimble to divest the hardware side of its agricultural business, an important vertical, while retaining partial ownership. With a cleaner, recurring-revenue business model now in focus, we expect the company to realize better gross margins, free cash flow, and profitability over the long term. Today, our investment thesis is underpinned by a business that has gone through a heavy lift on the transformation side, has vastly improved gross margins, and is growing annual recurring revenue at a solid rate. With a valuation at roughly half of its peer group, we see strong upside potential. During the period, we held our position steady as the share price appreciated.”
A worker at a remote location using Automated Application Technology with their tablet and scanner.
Trimble Inc. (NASDAQ:TRMB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Trimble Inc. (NASDAQ:TRMB) at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of Trimble Inc. (NASDAQ:TRMB) 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.
We discussed Trimble Inc. (NASDAQ:TRMB) in another article and shared the list of Cathie Wood stocks insiders are selling. In addition, please check out our hedge fund investor letters Q1 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.
