Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 5.82% (net) compared to a 7.56% gain for the S&P 500 Index benchmark. The firm focuses on quality businesses that have considerable competitive advantages, healthy balance sheets, robust cash flow characteristics, and muted volatility traits to mitigate capital losses during market fluctuations and experience upside participation during strong bull markets. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Hedged Equity Fund highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in the Q4 2022 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On March 28, 2023, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $97.24 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 5.50%, and its shares lost 41.53% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $996.447 billion.
Meridian Hedged Equity Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:
“Despite dominating the global e-commerce and cloud computing market, margin headwinds and a lack of free cash flow support pressured Amazon.com, Inc. (NASDAQ:AMZN)’s shares. Furthermore, the market became increasingly concerned about the company’s 2023 growth outlook due to potential macroeconomic challenges within both the retail and cloud segments. We believe the issues are transitory, and the earnings power of the business continues to be masked by investments— Amazon overbuilt capacity during the pandemic and is rationalizing its network. It also announced plans to reduce its workforce. As the year-end valuation appeared inexpensive, relative to historical pricing, we are optimistic about Amazon. We believe several years of growth potential remain for both e-commerce and cloud adoption.”
Photo by Bryan Angelo on Unsplash
Amazon.com, Inc. (NASDAQ:AMZN) is in 2nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 240 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter which was 269 in the previous quarter.
We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared the list of best cyclical stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
