Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 4.17% net compared to a 5.23% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned 4.37% during the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Contrarian Fund highlighted stocks like Okta, Inc. (NASDAQ:OKTA) in the second quarter 2023 investor letter. Headquartered in San Francisco, California., Okta, Inc. (NASDAQ:OKTA) provides an identity management platform for enterprises. On October 3, 2023, Okta, Inc. (NASDAQ:OKTA) stock closed at $78.84 per share. One-month return of Okta, Inc. (NASDAQ:OKTA) was -9.49%, and its shares gained 33.12% of their value over the last 52 weeks. Okta, Inc. (NASDAQ:OKTA) has a market capitalization of $13 billion.
Meridian Contrarian Fund made the following comment about Okta, Inc. (NASDAQ:OKTA) in its Q2 2023 investor letter:
“Okta, Inc. (NASDAQ:OKTA) develops identity and access management software that enhances security while streamlining access to authorized resources for enterprises and consumer-facing applications. We invested in the stock in late 2022 after earnings declined following an acquisition that was unpopular with the market and, more importantly, many inside the company. Although the company experienced significant salesforce attrition and leadership changes in the wake of the deal, we believed that Okta still had the leading product in the industry and that the sales staff turmoil, which is not uncommon in the software industry, was fixable. Furthermore, we found the risk/reward profile attractive as the company’s price-to-sales multiple had plummeted, and the balance sheet remained strong. Since we first invested, Okta stock has performed well, but it declined in the quarter after management discussed a potential macro slowdown during the quarterly earnings call. Despite the potential macro pressures, the company raised earnings estimates due to business improvements that validated our initial investment thesis, and we maintained our position in the stock.”
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Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of second quarter which was 58 in the previous quarter.
We discussed Okta, Inc. (NASDAQ:OKTA) in another article and shared the list of best cybersecurity stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q2 2023 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.
