Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -3.28% net compared to -2.82% return for the Russell 2500 Index. At the same time, the fund outperformed its secondary benchmark, the Russell 2500 Value Index, which returned -4.50%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds highlighted stocks like DigitalBridge Group, Inc. (NYSE:DBRG) in the Q3 2022 investor letter. Headquartered in Boca Raton, Florida, DigitalBridge Group, Inc. (NYSE:DBRG) operates a infrastructure investment company. On December 7, 2022, DigitalBridge Group, Inc. (NYSE:DBRG) stock closed at $12.73 per share. One-month return of DigitalBridge Group, Inc. (NYSE:DBRG) was -9.78% and its shares lost 60.66% of their value over the last 52 weeks. DigitalBridge Group, Inc. (NYSE:DBRG) has a market capitalization of $2.035 billion.
Meridian Funds made the following comment about DigitalBridge Group, Inc. (NYSE:DBRG) in its Q3 2022 investor letter:
“DigitalBridge Group, Inc. (NYSE:DBRG) (formerly Colony Capital Inc.) is a real estate investment trust (REIT) focused on digital infrastructure such as data centers, wireless towers, and similar assets. The company both owns and operates properties and takes investment stakes through an asset management division. Prior to our investment, DigitalBridge suffered an extended decline in its business when management strayed from the company’s traditionally strong property investment business by completing a merger that added a collection of diverse yet undifferentiated and subscale properties to its portfolio and burdened it with debt. The catalyst for our investment was a new management team in 2019 that brought significant experience in digital assets to the company and began to transform the business by selling its hospitality, healthcare, and industrial properties and reinvesting the proceeds into digital infrastructure properties. Since the transformation, DigitalBridge has been a profitable investment for the Fund. However, despite solid operating performance during the quarter, the stock declined due to macroeconomic concerns, which were exacerbated by the company’s decision in May of 2022 to acquire data center operator Switch. We believe DigitalBridge remains well positioned in an industry with highly attractive long-term characteristics and that its strong balance sheet and management team will help it ride out a macro downturn. As former Switch shareholders, we believe DigitalBridge is acquiring an excellent set of assets from which the experienced management team at DigitalBridge should be able to create additional value. We maintained our position in the stock.”
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DigitalBridge Group, Inc. (NYSE:DBRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held DigitalBridge Group, Inc. (NYSE:DBRG) at the end of the third quarter, which was 26 in the previous quarter.
We discussed DigitalBridge Group, Inc. (NYSE:DBRG) in another article and shared the list of dividend stocks to buy according to billionaire Seth Klarman. In addition, please check out our hedge fund investor letters Q3 2022 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.
