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 QuidelOrtho Corporation NASDAQ:QDEL), in the first quarter 2024 investor letter. QuidelOrtho Corporation (NASDAQ:QDEL) is a diagnostic testing solutions provider. The one-month return of QuidelOrtho Corporation (NASDAQ:QDEL) was -13.88%, and its shares lost 59.22% of their value over the last 52 weeks. On June 18, 2024, QuidelOrtho Corporation (NASDAQ:QDEL) stock closed at $35.61 per share with a market capitalization of $2.385 billion.
Meridian Small Cap Growth Fund stated the following regarding QuidelOrtho Corporation NASDAQ:QDEL) in its first quarter 2024 investor letter:
“QuidelOrtho Corporation NASDAQ:QDEL). QuidelOrtho is a global leader in the diagnostics industry. The merger of Quidel and Ortho Clinical Diagnostics has resulted in a top 10 player in the in-vitro diagnostics industry, combining Quidel’s strong point of care platform with Ortho’s blood chemistry and transfusion platform. Quidel declined during the quarter on weaker Q4 earnings and a reduced 2024 outlook. The company’s financial shortfall can be attributed to a dramatic slowdown in its higher-margin respiratory business and in particular Covid-19 testing volumes. The company now anticipates Covid testing revenue of ~$200 million, down from prior expectations of $200-$400 million. However, this should serve as the new base as current testing is associated with an endemic state and a normal respiratory season. Outside of its respiratory business, the company’s clinical diagnostic division continues to demonstrate steady performance. While the respiratory revenue and margin impact were disappointing, we continue to hold a position in the company given steady performance out of its core business, solid profitability (EBITDA margins north of 20%), and an exciting new product launch in Savannah that could accelerate top-line growth.”
A scientist observing the results of a molecular diagnostic test.
QuidelOrtho Corporation (NASDAQ:QDEL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held QuidelOrtho Corporation (NASDAQ:QDEL) at the end of the first quarter which was 32 in the previous quarter. In the first quarter 2024, QuidelOrtho Corporation (NASDAQ:QDEL) reported revenue of $711 million, down from $846 million in the first quarter 2023. While we acknowledge the potential of QuidelOrtho Corporation (NASDAQ:QDEL) 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 QuidelOrtho Corporation (NASDAQ:QDEL) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company. QuidelOrtho Corporation (NASDAQ:QDEL) was one of the main detractors of ClearBridge Small Cap Value Strategy in the first quarter of 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
