Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Contrarian Fund”. The Fund aims to invest in undervalued companies with clear catalysts for sustainable improvement. A copy of the letter can be downloaded here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Early-period gains were attributed to confidence in domestic companies and to the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Contrarian Fund returned 1.10% compared to the Russell 2500 Growth Index’s 2.04% return and its secondary benchmark, the Russell 2500 Value Index’s 4.77% return. 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 Contrarian Fund highlighted NLIGHT, Inc. (NASDAQ:LASR) as a notable contributor. NLIGHT, Inc. (NASDAQ:LASR) is a technology company that focuses on the design and development of semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. On June 26, 2026, NLIGHT, Inc. (NASDAQ:LASR) closed at $61.37 per share. One-month return of NLIGHT, Inc. (NASDAQ:LASR) was -61.37%, and its shares gained 209.10% over the past 52 weeks. NLIGHT, Inc. (NASDAQ:LASR) has a market capitalization of $3.45 billion.
Meridian Contrarian Fund stated the following regarding NLIGHT, Inc. (NASDAQ:LASR) in its Q1 2026 investor letter:
“NLIGHT, Inc. (NASDAQ:LASR) is a leading provider of high-power lasers serving the medical, industrial, and increasingly, defense markets. We initially invested in nLight as they transitioned the company to focus on laser defense applications that shield our troops from drones and enemy missiles. The use cases for the U.S. Department of War and allies continue to grow – including laser sensing applications enabling improved situational awareness and space-based communications. During the quarter, investors continued to re-rate the stock higher on the conflict in Iran and across the Middle East. We remain investors after trimming part of the position on strength as part of our disciplined risk management process.”
NLIGHT, Inc. (NASDAQ:LASR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held NLIGHT, Inc. (NASDAQ:LASR) at the end of the first quarter, up from 36 in the previous quarter. While we acknowledge the risk and potential of NLIGHT, Inc. (NASDAQ:LASR) 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 NLIGHT, Inc. (NASDAQ:LASR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NLIGHT, Inc. (NASDAQ:LASR) and shared Prosper Stars & Stripes’ insights on the company. 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.
