Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 11.10% (net) lagging behind the benchmark, the Russell 2500 Growth Index’s 12.59% return. The investment strategy of the Fund emphasizes investing in high-quality companies with recurring revenue and sustainable competitive advantages. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Meridian Growth Fund featured stocks like Fox Factory Holding Corp. (NASDAQ:FOXF) in the fourth quarter 2023 investor letter. Headquartered in Duluth, Georgia, Fox Factory Holding Corp. (NASDAQ:FOXF) is a ride dynamics products manufacturer. On March 28, 2024, Fox Factory Holding Corp. (NASDAQ:FOXF) stock closed at $52.07 per share. One-month return of Fox Factory Holding Corp. (NASDAQ:FOXF) was 2.93%, and its shares lost 55.81% of their value over the last 52 weeks. Fox Factory Holding Corp. (NASDAQ:FOXF) has a market capitalization of $2.187 billion.
Meridian Growth Fund stated the following regarding Fox Factory Holding Corp. (NASDAQ:FOXF) in its fourth quarter 2023 investor letter:
“Fox Factory Holding Corp. (NASDAQ:FOXF) is a specialized manufacturer of highly engineered suspension components used in high-end mountain bikes, on- and off-road vehicles, and other applications where high-performance components are required. The company’s weak quarterly results stemmed from post-pandemic de-stocking, primarily within the bike channel. Responding to strong demand throughout COVID, the company rebuilt its inventory levels just as demand for restocking by its end customers softened. The automotive strikes, which shut down a few of its customers’ assembly lines, also impacted results. We expect the company to work through its excessive inventory over the next couple of quarters. Fox still enjoys relatively high margins, with good growth and profitability metrics. We are keeping our eye on consumer health while learning more about the potential opportunities that may materialize from its recent acquisition of Marucci Sports. During the quarter, we maintained our position in the company.”
A cyclist in full gear on their mountain bike, the Performance Cycling Components visible.
Fox Factory Holding Corp. (NASDAQ:FOXF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Fox Factory Holding Corp. (NASDAQ:FOXF) was held by 22 hedge fund portfolios, compared to 14 in the previous quarter, according to our database.
We discussed Fox Factory Holding Corp. (NASDAQ:FOXF) in another article and shared Wasatch Core Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
