Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 8.78% net compared to a 7.43% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned 9.21%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Contrarian Fund highlighted stocks like DigitalBridge Group, Inc. (NYSE:DBRG) in its Q4 2022 investor letter. Headquartered in Boca Raton, Florida, DigitalBridge Group, Inc. (NYSE:DBRG) is an infrastructure investment firm. On March 23, 2023, DigitalBridge Group, Inc. (NYSE:DBRG) stock closed at $10.33 per share. One-month return of DigitalBridge Group, Inc. (NYSE:DBRG) was -15.40%, and its shares lost 63.26% of their value over the last 52 weeks. DigitalBridge Group, Inc. (NYSE:DBRG) has a market capitalization of $1.653 billion.
Meridian Contrarian Fund made the following comment about DigitalBridge Group, Inc. (NYSE:DBRG) in its Q4 2022 investor letter:
“DigitalBridge Group, Inc. (NYSE:DBRG) (formerly Colony Captial Inc.) is a real estate investment trust (REIT) focused on digital infrastructure such as data centers, wireless towers, and similar assets. In addition to owning and operating properties, the company invests in the space through an asset management division. Prior to our investment, DigitalBridge suffered an extended decline in its business as management strayed from the company’s traditionally strong property investment business by completing an ill-fitting merger that burdened it with debt. The catalyst for our investment was the hiring of a new management team in 2019 that brought significant experience in digital assets to the company. It also sold its hospitality, healthcare, and industrial properties and reinvested the proceeds into digital infrastructure assets. Since the transformation, DigitalBridge has demonstrated strong fundamental performance and impressive growth. During the quarter, the stock declined due to investor concerns that while data center fundamentals appear strong presently, macro weakness may weigh on future prospects. While such concerns are valid, we remain comfortable owning DigitalBridge, due largely to its cellular tower assets that should be less economically sensitive than data centers, and its fee-based asset management business. The company also has an enviable capital position and an experienced management team that should allow it to capitalize on industry weakness to drive growth. As such, we added to our position during the quarter.”
DigitalBridge Group, Inc. (NYSE:DBRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held DigitalBridge Group, Inc. (NYSE:DBRG) at the end of the fourth quarter which was 22 in the previous quarter.
We discussed DigitalBridge Group, Inc. (NYSE:DBRG) in another article and shared the list of small-cap stocks with insider buying. 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.
