Here’s What Lifted Turning Point Brands (TPB)

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here.  During the quarter, equity markets experienced a significant rebound, increasing by 23% from their lowest points within the period to reach new record highs. In this environment, the fund returned 6.96% (net) in the second quarter compared to the Russell 2000 Growth Index’s 11.97% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as Turning Point Brands, Inc. (NYSE:TPB). Headquartered in Louisville, Kentucky, Turning Point Brands, Inc. (NYSE:TPB) manufactures, markets, and distributes branded consumer products. The one-month return of Turning Point Brands, Inc. (NYSE:TPB) was 25.45%, and its shares gained 146.44% of their value over the last 52 weeks. On August 18, 2025, Turning Point Brands, Inc. (NYSE:TPB) stock closed at $98.58 per share, with a market capitalization of $1.778 billion.

Meridian Small Cap Growth Fund stated the following regarding Turning Point Brands, Inc. (NYSE:TPB) in its second quarter 2025 investor letter:

“Turning Point Brands, Inc. (NYSE:TPB), a producer of branded consumer products including alternative smoking accessories, delivered solid results during the quarter. Strong execution and rising market share in its tobacco-free nicotine pouches contributed to strong top-line growth and improved profitability. The stock responded accordingly, and we trimmed our position during the quarter based on our valuation discipline.”

A worker athlete with a rolling paper held in hand, smoking from the finished cigar.

Turning Point Brands, Inc. (NYSE:TPB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Turning Point Brands, Inc. (NYSE:TPB) at the end of the first quarter, which was 30 in the previous quarter. Turning Point Brands, Inc.’s (NYSE:TPB) second quarter revenue increased 25% to $116.6 million. While we acknowledge the risk and potential of Turning Point Brands, Inc. (NYSE:TPB) 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 Turning Point Brands, Inc. (NYSE:TPB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Turning Point Brands, Inc. (NYSE:TPB) and shared the list of best bear market stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 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.