Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. On September 18th, the U.S. Federal Reserve (“Fed”) reduced interest rates by 0.5%, bringing much-needed relief to investors. This crucial action contributed to stabilizing the markets following a volatile August. During the quarter, small-cap stocks outperformed large-cap stocks, achieving gains of 9.3% and 6.1%, respectively, according to the Russell family of indices. In the quarter, the fund returned 6.78% (net) outperforming the benchmark, the Russell 2500 Growth Index’s 6.99% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Growth Fund highlighted stocks like Okta, Inc. (NASDAQ:OKTA), in the third quarter 2024 investor letter. Okta, Inc. (NASDAQ:OKTA) is an identity partner that offers Okta’s suite of products and services used to manage and secure identities. The one-month return of Okta, Inc. (NASDAQ:OKTA) was 5.55%, and its shares gained 7.98% of their value over the last 52 weeks. On November 27, 2024, Okta, Inc. (NASDAQ:OKTA) stock closed at $76.42 per share with a market capitalization of $12.98 billion.
Meridian Growth Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q3 2024 investor letter:
“Okta, Inc. (NASDAQ:OKTA) is the largest independent identity software company, serving a large and diverse clientele, including enterprises, universities, and government agencies. Its solutions provide advanced security authentication, and integration with over 7,000 software vendors enhances its competitive advantage. Despite beating earnings expectations and raising guidance, the stock underperformed due to concerns about a slightly lower-than-expected forward growth metric, which led to worries about fiscal year 2026 growth prospects. Historically, management has been conservative in its guidance and has consistently over-delivered, and we believe the market overreacted as fundamentals remain strong. As a result, we added to our position during the quarter.”
A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.
Okta, Inc. (NASDAQ:OKTA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of the third quarter which was 50 in the previous quarter. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) 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 Okta, Inc. (NASDAQ:OKTA) and shared the list of AI news you should not ignore. White Brook Capital Partners initiated a position in Okta, Inc. (NASDAQ:OKTA) during Q3 2024. 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.