Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter can be downloaded here. U.S. equity markets navigated a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment cooled later in the quarter. Despite this moderation, the quarter contributed positively to robust annual results. Small caps delivered an annual return of 12.8% with a 2.2% Q4 gain. Value outperformed growth as per the Russell family of indices. In Q4 2025, The Meridian Small Cap Growth Fund returned 0.90% (net) compared to the Russell 2000 Growth Index’s 1.22% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as Axogen, Inc. (NASDAQ:AXGN). Axogen, Inc. (NASDAQ:AXGN) is a leader in the development and commercialization of technologies for peripheral nerve regeneration and repair. On February 18, 2026, Axogen, Inc. (NASDAQ:AXGN) stock closed at $35.25 per share. One-month return of Axogen, Inc. (NASDAQ:AXGN) was 10.16%, and its shares are up 90.54% over the past twelve months. Axogen, Inc. (NASDAQ:AXGN) has a market capitalization of $1.768 billion.
Meridian Small Cap Growth Fund stated the following regarding Axogen, Inc. (NASDAQ:AXGN) in its fourth quarter 2025 investor letter:
“Axogen, Inc. (NASDAQ:AXGN) is a leader in the development of technologies focused on peripheral nerve regeneration and repair. The company’s biologically active nerve graft platform reduces procedural risks by eliminating the need for secondary surgical sites. Shares advanced during the quarter following several positive developments, including accelerated revenue growth of 20% and gross margins of almost 77%, which exceeded investor expectations. In addition, the company’s flagship product received favorable reimbursement terms, which should support broader hospital adoption and improved top-line growth. Perhaps most notably, the FDA approved the BLA submission for a key therapy without restrictive labeling, granting 12 years of market exclusivity and extending the company’s commercial coverage and growth runway.”
Axogen, Inc. (NASDAQ:AXGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Axogen, Inc. (NASDAQ:AXGN) at the end of the third quarter, compared to 21 in the previous quarter. While we acknowledge the risk and potential of Axogen, Inc. (NASDAQ:AXGN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axogen, Inc. (NASDAQ:AXGN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Axogen, Inc. (NASDAQ:AXGN) and shared Meridian Small Cap Growth Fund’s views on the company during the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 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.
