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 LegalZoom.com, Inc. (NASDAQ:LZ) in its Q3 2024 investor letter. LegalZoom.com, Inc. (NASDAQ:LZ) is an online platform that supports the legal, compliance, and business management needs of small businesses, and consumers. The one-month return of LegalZoom.com, Inc. (NASDAQ:LZ) was 10.58%, and its shares lost 31.14% of their value over the last 52 weeks. On November 27, 2024, LegalZoom.com, Inc. (NASDAQ:LZ) stock closed at $7.94 per share with a market capitalization of $1.37 billion.
Meridian Small Cap Growth Fund stated the following regarding LegalZoom.com, Inc. (NASDAQ:LZ) in its Q3 2024 investor letter:
“LegalZoom.com, Inc. (NASDAQ:LZ) is an online platform providing legal, compliance, and tax services to small businesses. Its performance suffered during the period following the sudden departure of its CEO and the appointment of the board chairman, who is a relatively unknown and unproven public company CEO. This leadership change, combined with a challenging macroeconomic environment for small business clients, weighed on the stock. While we maintain a favorable view of the company’s potential, we are taking a wait-and-see position with the new management. We believe the stock’s attractive valuation and a relatively favorable risk/reward profile provides room for patience and held our position during the period.”
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LegalZoom.com, Inc. (NASDAQ:LZ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held LegalZoom.com, Inc. (NASDAQ:LZ) at the end of the third quarter which was 26 in the previous quarter. Total revenue of LegalZoom.com, Inc. (NASDAQ:LZ) in the third quarter was $169 million, up 1% compared to prior year quarter. While we acknowledge the potential of LegalZoom.com, Inc. (NASDAQ:LZ) 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 LegalZoom.com, Inc. (NASDAQ:LZ) and shared the list of oversold small cap stocks to buy. 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.