Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Growth Fund”. A copy of the letter can be downloaded here. The US equity market started 2026 with volatility due to trade policy uncertainty and geopolitical risks. Initial optimism from domestic company confidence and the Federal Reserve easing waned following increased tariffs and military strikes against Iran. The value outperformed across the entire market-cap spectrum. Against this backdrop, the Meridian Growth Fund (the “Fund”) returned -7.90%, trailing the Russell 2500 Growth Index benchmark, which returned -3.52%. The underperformance was driven by industry allocation effects, while stock selection was a meaningful positive contributor. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Meridian Growth Fund highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN). Churchill Downs Incorporated (NASDAQ:CHDN) is a US-based racing, online wagering, and gaming company. On May 21, 2026, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $85.53 per share. One-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was -16.06%, and its shares lost 8.58% over the past 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a market capitalization of $5.96 billion.
Meridian Growth Fund stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its Q1 2026 investor letter:
“Churchill Downs Incorporated (NASDAQ:CHDN) is a diversified gaming, racing, and entertainment company anchored by ownership of the Kentucky Derby, the most prestigious and valuable franchise in horse racing, along with historical racing machines and a portfolio of regional gaming properties. The company is positioned to unlock significant value through a potential divestiture of its regional casino portfolio, which would improve growth visibility and reduce leverage. Shares declined during the quarter after reporting mixed results— strong performance in live racing and historical racing was offset by continued weakness in the regional gaming segment, while the absence of any update on a potential casino divestiture frustrated investors expecting a near-term catalyst.”
Churchill Downs Incorporated (NASDAQ:CHDN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 50 hedge fund portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) at the end of the fourth quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of Churchill Downs Incorporated (NASDAQ:CHDN) 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 Churchill Downs Incorporated (NASDAQ:CHDN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Churchill Downs Incorporated (NASDAQ:CHDN) and shared the list of best upside stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2026 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.
