Meridian Growth Fund Trimmed Halozyme Therapeutics (HALO) for the Valuation Discipline

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  Uncertainty surrounding prospective tariff policies weighed on investor sentiment and risk assets in the quarter, leading U.S. equities to experience their weakest performance since 2022.  Value stocks outperformed their growth counterparts within the small-cap space. Against this backdrop, the fund returned -8.01% (net) compared to the Russell 2500 Growth Index’s -10.80% 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 Growth Fund highlighted stocks such as Halozyme Therapeutics, Inc. (NASDAQ:HALO). Based in San Diego, California, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical company. The one-month return of Halozyme Therapeutics, Inc. (NASDAQ:HALO) was -23.99%, and its shares gained 16.78% of their value over the last 52 weeks. On June 3, 2025, Halozyme Therapeutics, Inc. (NASDAQ:HALO) stock closed at $53.31 per share, with a market capitalization of $6.569 billion.

Meridian Growth Fund stated the following regarding Halozyme Therapeutics, Inc. (NASDAQ:HALO) in its Q1 2025 investor letter:

“Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical company whose key technology platform, ENHANZE®, allows partner companies to deliver drug therapies subcutaneously rather than via traditional IV infusion. This delivery method reduces treatment burden for patients and can also help extend the commercial life of partnered drugs. Shares rose during the quarter on better-than-expected results, EBITDA margins exceeding 60%, and continued strong free cash flow generation. Additionally, the company announced it would not move forward with a previously considered acquisition, opting instead to concentrate on its core business—news that was well received by the market. We trimmed the position during the period based on our valuation discipline.”

Is Halozyme Therapeutics, Inc. (HALO) the Unstoppable Growth Stock to Invest in Now?

An image of a research technician wearing lab coat with a syringe full of biopharmaceuticals.

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Halozyme Therapeutics, Inc. (NASDAQ:HALO) at the end of the first quarter, which was 25 in the previous quarter. In the first quarter, Halozyme Therapeutics, Inc.’s (NASDAQ:HALO) first quarter revenue increased 35% year-over-year to $265 million. While we acknowledge the potential of Halozyme Therapeutics, Inc. (NASDAQ:HALO) 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 Halozyme Therapeutics, Inc. (NASDAQ:HALO) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.