Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter is available to download here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Initial gains were attributed to confidence in domestic companies and 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 Small Cap Growth Fund returned -8.37% compared to the Russell 2000 Growth Index’s -2.82% return. The Fund’s relative underperformance was driven by industry allocation effects, while stock selection contributed positively. Despite the market environment, the fund prioritizes high-quality businesses characterized by durable competitive advantages, robust balance sheets, and a clear outlook for sustainable earnings growth. 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 Small Cap Growth Fund highlighted stocks like Kirby Corporation (NYSE:KEX). Kirby Corporation (NYSE:KEX) is a US-based domestic tank barge operator. On April 20, 2026, Kirby Corporation (NYSE:KEX) closed at $142.86 per share. One-month return of Kirby Corporation (NYSE:KEX) was 4.77%, and its shares gained 50.74% over the past 52 weeks. Kirby Corporation (NYSE:KEX) has a market capitalization of $7.66 billion.
Meridian Small Cap Growth Fund stated the following regarding Kirby Corporation (NYSE:KEX) in its Q1 2026 investor letter:
“Kirby Corporation (NYSE:KEX) is the largest domestic tank barge operator in the United States, transporting petrochemicals, refined products, and agricultural chemicals through its inland and coastal marine fleets, with an additional distribution and services segment. The company benefits from a disciplined supply environment in the inland market and a rapidly expanding power generation backlog. During the quarter, shares advanced as strong performance in the coastal marine and power generation businesses more than offset ongoing pricing pressure in the inland market, while the substantial backlog provided confidence in forward growth visibility.”
Kirby Corporation (NYSE:KEX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held Kirby Corporation (NYSE:KEX) at the end of the fourth quarter, compared to 46 in the previous quarter. While we acknowledge the risk and potential of Kirby Corporation (NYSE:KEX) 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 Kirby Corporation (NYSE:KEX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
