Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 7.41% net compared to a 4.13% return for the Russell 2000 Growth Index. The general positive factors in the market helped the strategy to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Small Cap Growth Fund highlighted stocks like Hudson Technologies, Inc. (NASDAQ:HDSN) in its Q4 2022 investor letter. Headquartered in Woodcliff Lake, New Jersey, Hudson Technologies, Inc. (NASDAQ:HDSN) is a refrigerant service-providing company. On March 21, 2023, Hudson Technologies, Inc. (NASDAQ:HDSN) stock closed at $8.08 per share. One-month return of Hudson Technologies, Inc. (NASDAQ:HDSN) was -20.86%, and its shares gained 42.00% of their value over the last 52 weeks. Hudson Technologies, Inc. (NASDAQ:HDSN) has a market capitalization of $366.258 million.
Meridian Small Cap Growth Fund made the following comment about Hudson Technologies, Inc. (NASDAQ:HDSN) in its Q4 2022 investor letter:
“Hudson Technologies, Inc. (NASDAQ:HDSN), is the market leader in recycled and reclaimed refrigerants with proprietary reclamation technology and a national distribution network. We have owned shares of the company for several years due to our belief that its leading position would allow the company to capitalize on improving supply-demand dynamics from the Environmental Protection Agency’s (EPA’s) phaseout of R-22 (refrigerant used in air conditioners). The phaseout concluded in 2020 and virgin R-22 is no longer being produced. This has resulted in strong refrigerant pricing given stable demand and more limited supply. Such industry dynamics contributed to 48% year-over-year revenue growth and a sizeable expansion in the company’s gross margin to 49% in its most recent quarter. Capitalizing on the robust cash generation, management has improved the company’s balance sheet, most notably by reducing overall debt. We are optimistic that another catalyst for growth is the AIM Act to reduce the production of hydrofluorocarbons (HFCs). Similar to the phaseout of R-22, we believe this will result in strong supply-demand dynamics for reclaimed HFC refrigerants and allow Hudson to capitalize on its market-leading position. During the quarter, we maintained our position in the stock.”
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Hudson Technologies, Inc. (NASDAQ:HDSN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Hudson Technologies, Inc. (NASDAQ:HDSN) at the end of the fourth quarter which was 16 in the previous quarter.
We discussed Hudson Technologies, Inc. (NASDAQ:HDSN) in another article and shared the list of best momentum stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.
