Here’s Why Meridian Small Cap Growth Fund Increased Its Position in International Money Express (IMXI)

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” first quarter 2025 investor letter.  A copy of the letter can be downloaded here. U.S. equities recorded their lowest quarterly performance since 2022, primarily due to uncertainty surrounding potential tariff policies. In this environment, the fund returned -12.21% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as International Money Express, Inc. (NASDAQ:IMXI). Headquartered in Miami, Florida, International Money Express, Inc. (NASDAQ:IMXI) is a financial technology company that provides money remittance services. The one-month return of International Money Express, Inc. (NASDAQ:IMXI) was 6.89%, and its shares lost 45.61% of their value over the last 52 weeks. On June 6, 2025, International Money Express, Inc. (NASDAQ:IMXI) stock closed at $11.64 per share, with a market capitalization of $348.929 million.

Meridian Small Cap Growth Fund stated the following regarding International Money Express, Inc. (NASDAQ:IMXI) in its Q1 2025 investor letter:

“International Money Express, Inc. (NASDAQ:IMXI) is a financial technology company offering global money transfer services and related solutions. The company had previously initiated a strategic review, including a potential sale, but ultimately did not receive satisfactory bids and will remain a public entity. This outcome disappointed some short-term investors who had anticipated a near-term monetization event. Additionally, continued investment in its digital platform—while promising, with projected annual growth of ~80%—is expected to weigh on margins in the near term. Despite these short-term pressures, we are encouraged by the company’s strong balance sheet and attractive double-digit free cash flow yield, and we modestly increased our position during the period.”

Is Billion Dollar Hedge Fund Voss Capital Crazy About International Money Express (IMXI)?

A woman using a smartphone to access a service provided by the company.

International Money Express, Inc. (NASDAQ:IMXI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held International Money Express, Inc. (NASDAQ:IMXI) at the end of the first quarter, which was 15 in the previous quarter. In Q1 2025, International Money Express, Inc. (NASDAQ:IMXI) reported total revenue of $144.3 million compared to $150.4 million in Q1 2024. While we acknowledge the potential of International Money Express, Inc. (NASDAQ:IMXI) 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 undervalued AI stock set for massive gains.

In another article, we covered International Money Express, Inc. (NASDAQ:IMXI) and shared the list of NASDAQ stocks with the lowest P/E ratios. In addition, please check out our hedge fund investor letters Q1 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.