Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -16.52%, compared to a -16.98% return for its benchmark index the Russell 2500 Index. However, it underperformed the Russell 2500 Value Index, the fund’s secondary benchmark, which returned -15.39% in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds discussed stocks like SMART Global Holdings, Inc. (NASDAQ:SGH) in the second quarter investor letter. Headquartered in Newark, California, SMART Global Holdings, Inc. (NASDAQ:SGH) provides specialty memory solutions. On September 14, 2022, SMART Global Holdings, Inc. (NASDAQ:SGH) stock closed at $18.04 per share. One-month return of SMART Global Holdings, Inc. (NASDAQ:SGH) was -12.09% and its shares lost 27.59% of their value over the last 52 weeks. SMART Global Holdings, Inc. (NASDAQ:SGH) has a market capitalization of $901.847 million.
Here is what Meridian Funds specifically said about SMART Global Holdings, Inc. (NASDAQ:SGH) in its Q2 2022 investor letter:
“SMART Global Holdings, Inc. (NASDAQ:SGH) is a diversified technology company with leading market positions in memory controllers, LEDs, high-performance computing (HPC), and the internet of things (IoT). The company hit a rough patch in 2019 and early 2020 when earnings declined due to a combination of volatility in its memory business caused by weakness in Brazil and inventory corrections, growth investments the company had made in new products ahead of revenue, and order delays in its HPC business. While none of these developments is particularly unusual, it is uncommon for all three to turn negative at the same time. Our investment thesis was that the company’s impressive new management team could not only smooth out some of the volatility in the business but also drive growth through superior capital allocation and organic investment. We also believed that strong secular trends were in place for memory controllers, driven by the increased importance of memory for computing speeds and increased memory content in devices, and for HPC, driven by artificial intelligence and machine learning. Smart Global’s stock traded lower during the quarter due to macro concerns and weakness in its Brazil segment, which is highly exposed to a slowdown in consumer demand for mobile devices and PCs. We took advantage of the downturn and increased our position. We are comfortable with the volatility of the Brazil business as, over cycles, this segment is a solid cash generator that helps fund investments in the strong secular growth prospects for memory controllers and HPC.”
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SMART Global Holdings, Inc. (NASDAQ:SGH) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held SMART Global Holdings, Inc. (NASDAQ:SGH) at the end of the second quarter which was 16 in the previous quarter.
We discussed SMART Global Holdings, Inc. (NASDAQ:SGH) in another article and shared the list of stocks that are losing value. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
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Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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