Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -9.91% (net) compared to a -6.84% return for the Russell 2500 Growth Index. The firm’s investment process prioritizes the management of risk over the opportunity for a return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Growth Fund highlighted stocks like Okta, Inc. (NASDAQ:OKTA) in the third quarter 2023 investor letter. Headquartered in San Francisco, California, Okta, Inc. (NASDAQ:OKTA) provides an identity management platform for enterprises. On December 5, 2023, Okta, Inc. (NASDAQ:OKTA) stock closed at $72.69 per share. One-month return of Okta, Inc. (NASDAQ:OKTA) was 7.77%, and its shares gained 17.89% of their value over the last 52 weeks. Okta, Inc. (NASDAQ:OKTA) has a market capitalization of $11.979 billion.
Meridian Growth Fund made the following comment about Okta, Inc. (NASDAQ:OKTA) in its Q3 2023 investor letter:
“Okta, Inc. (NASDAQ:OKTA) is the largest independent identity software company, serving enterprises, small- and medium-sized businesses, universities, non-profits, and government agencies across the globe. Its solutions provide higher-level security authentication services, a business-critical function that has the attention of CEOs and IT leaders everywhere. The company’s integration with 7,000 other software vendors and system providers is a competitive advantage that enables rapid and seamless implementations. Okta’s complete product suite allows customers to deploy an enterprise-wide identity platform that serves both the workforce segment (clients’ employees) and the customer segments (clients’ customers). The stock has started to recover after falling nearly 85% from post-COVID bubble levels due to a stabilization in the overall macro environment for security services. The company has also seen a normalization in salesforce attrition which had hampered growth. The stock moved higher during the quarter when it reported higher than expected revenues and a much-improved adjusted operating margin of 11% versus -3% in the prior year quarter. Beyond its core capabilities, which are in high demand, we are also encouraged by the company’s ability to expand into product adjacencies such as privileged access management and identity governance. Due to these improving fundamentals, we added to our position in the company during the period.”
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Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of third quarter which was 57 in the previous quarter.
We discussed Okta, Inc. (NASDAQ:OKTA) in another article and shared the list of stocks with consistent growth. In addition, please check out our hedge fund investor letters Q3 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.
