Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The market rally continued in the first quarter of 2024, supported by positive inflation data and robust economic signs. The fund returned 6.04% (net) in the first quarter compared to the Russell 2000 Growth Index’s 7.58% 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 Forrester Research, Inc. (NASDAQ:FORR), in the first quarter 2024 investor letter. Forrester Research, Inc. (NASDAQ:FORR) is an independent research and advisory company. The one-month return of Forrester Research, Inc. (NASDAQ:FORR) was -9.23%, and its shares lost 46.05% of their value over the last 52 weeks. On June 18, 2024, Forrester Research, Inc. (NASDAQ:FORR) stock closed at $16.61 per share with a market capitalization of $317.367 million.
Meridian Small Cap Growth Fund stated the following regarding Forrester Research, Inc. (NASDAQ:FORR) in its first quarter 2024 investor letter:
“Forrester Research, Inc. (NASDAQ:FORR) is an independent market research and consulting firm widely known for its publications and insights on topics such as cloud migration, AI, cybersecurity, and customer experience. We like the business for its potential to generate high margins through a sticky, subscription-based revenue model. The company acquired SiriusDecisions in 2019, expanding its expertise beyond its customer base. Over the last few years, however, the company implemented several changes that negatively impacted results. First, they migrated the product away from their legacy strengths and pushed customers to switch to a combined offering. These changes had the unintended consequence of forcing customers to reconsider their overall research spend and, in some cases, consolidate and reduce spending, causing a negative impact on revenue. Second, the company underwent a salesforce transition to target decision-makers higher up in the organization with its expanded offering. The stock declined during the quarter as new sales and revenue weakened through the transition. We believe that the market has been short[1]sighted and overly punitive. The company currently trades at an attractive valuation and, with an upgraded salesforce aligned with broadened capabilities, is well-positioned to improve results into 2025. We maintained our position in the company during the quarter.”
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Forrester Research, Inc. (NASDAQ:FORR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Forrester Research, Inc. (NASDAQ:FORR) at the end of the first quarter which was 12 in the previous quarter. The first quarter results of Forrester Research, Inc. (NASDAQ:FORR) were mixed. The company generated $100.1 million in revenue, down 12% year over year. While we acknowledge the potential of Forrester Research, Inc. (NASDAQ:FORR) 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 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.
