Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The significant move of the Fed to cut interest rates helped stabilize the market. Small caps outperformed large caps in the quarter. The fund returned 6.15% (net) in the third quarter compared to the Russell 2000 Growth Index’s 8.41% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Small Cap Growth Fund highlighted stocks like Turning Point Brands, Inc. (NYSE:TPB) in the third quarter 2024 investor letter. Headquartered in Louisville, Kentucky, Turning Point Brands, Inc. (NYSE:TPB) manufactures, markets, and distributes branded consumer products. The one-month return of Turning Point Brands, Inc. (NYSE:TPB) was 30.02%, and its shares gained 168.99% of their value over the last 52 weeks. On November 27, 2024, Turning Point Brands, Inc. (NYSE:TPB) stock closed at $61.41 per share with a market capitalization of $1.087 billion.
Meridian Small Cap Growth Fund stated the following regarding Turning Point Brands, Inc. (NYSE:TPB) in its Q3 2024 investor letter:
“Turning Point Brands, Inc. (NYSE:TPB) produces a range of branded consumer products, including alternative smoking accessories. The stock’s strong performance was supported by higher revenues and positive full-year guidance, particularly driven by its tobacco-free nicotine pouches, which saw triple-digit sales growth. While starting from a small base, that segment is well positioned to gain share in the fast-growing $5 billion tobacco-free category. We trimmed our position during the quarter as the share price appreciated.”
A worker athlete with a rolling paper held in hand, smoking from the finished cigar.
Turning Point Brands, Inc. (NYSE:TPB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Turning Point Brands, Inc. (NYSE:TPB) at the end of the third quarter which was 21 in the previous quarter. In the third quarter, Turning Point Brands, Inc.’s (NYSE:TPB) sales were up 3.8% year-over-year to $105.6 million. While we acknowledge the potential of Turning Point Brands, Inc. (NYSE:TPB) 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 another article, we discussed Turning Point Brands, Inc. (NYSE:TPB) and shared Maran Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.