Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Major index returns increased in the quarter due to strong earnings from large-cap technology companies, especially those connected to artificial intelligence. However, the market’s breadth revealed a different picture. The fund returned -5.03% (net) during the quarter underperforming the -4.27% return of the Russell 2500 Index and -4.31% returns of the secondary benchmark the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Contrarian Fund highlighted stocks like Brookfield Renewable Corporation (NYSE:BEPC), in the second quarter 2024 investor letter. Brookfield Renewable Corporation (NYSE:BEPC) owns and operates renewable power and sustainable solution assets. The one-month return of Brookfield Renewable Corporation (NYSE:BEPC) was 0.97%, and its shares gained 4.12% of their value over the last 52 weeks. On September 11, 2024, Brookfield Renewable Corporation (NYSE:BEPC) stock closed at $5.222 per share with a market capitalization of $726.777 million.
Meridian Contrarian Fund stated the following regarding Brookfield Renewable Corporation (NYSE:BEPC) in its Q2 2024 investor letter:
“Brookfield Renewable Corporation (NYSE:BEPC) operates one of the world’s largest renewable power platforms with a global portfolio featuring hydroelectric, solar, and wind projects along with other assets. We became Brookfield Renewable shareholders in 2020 when the company bought a holding of ours, TerraForm Power, and the acquisition generated significant returns for the Fund. We remained shareholders post-merger because we believed Brookfield Renewable was a well-managed company with excellent assets and strong growth prospects trading at a reasonable valuation. The stock performed well during the quarter when the company signed a large, multi-year deal to provide electricity generation to Microsoft’s AI-focused data centers, highlighting a long-term growth opportunity that we believe has been unappreciated by the market. We increased our position during the period as we believe the stock continues to offer attractive value.”
Solar panels in an agricultural field, highlighting the company’s commitment to renewable energy.
Brookfield Renewable Corporation (NYSE:BEPC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Brookfield Renewable Corporation (NYSE:BEPC) 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 addition, please check out our hedge fund investor letters Q2 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.
