Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund outperformed its benchmark index, the Russell 2500 Growth Index, and returned -22.24% net at the end of the second quarter. The firm’s investment strategy prioritizes risk management over potential returns. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds discussed stocks like Dynatrace, Inc. (NYSE:DT) in the second quarter investor letter. Based in Waltham, Massachusetts, Dynatrace, Inc. (NYSE:DT) is a technology company. On September 14, 2022, Dynatrace, Inc. (NYSE:DT) stock closed at $39.77 per share. One-month return of Dynatrace, Inc. (NYSE:DT) was -3.73% and its shares lost 43.99% of their value over the last 52 weeks. Dynatrace, Inc. (NYSE:DT) has a market capitalization of $11.428 billion.
Here is what Meridian Funds specifically said about Dynatrace, Inc. (NYSE:DT) in its Q2 2022 investor letter:
“Dynatrace, Inc. (NYSE:DT) develops cloud-based solutions that help large enterprises monitor and analyze IT infrastructure. As more companies migrate to digital business models, demand is rising for cloud-based solutions that enable them to detect vulnerabilities in applications, monitor and manage digital experiences, and provide business analytics and automation. With a global market opportunity of $50 billion, we believe Dynatrace is still early in its growth cycle. Most impressive to us is the company’s ability to deliver strong revenue growth in excess of 30% while also delivering healthy free cash flow margins of approximately 25%—a rare combination in the software industry. Dynatrace has been on our watch list for quite some time, owing to its large addressable market, strong and consistent growth, high margins, and healthy customer retention rates. However, until recently, we felt that its valuation was unjustifiably high. During the quarter, the downturn in technology stocks presented us with the opportunity to start a position in the company at what we believe was an attractive price. The stock subsequently rebounded and elevated Dynatrace to a top relative contributor in the Fund.”
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Dynatrace, Inc. (NYSE:DT) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Dynatrace, Inc. (NYSE:DT) at the end of the second quarter which was 43 in the previous quarter.
We discussed Dynatrace, Inc. (NYSE:DT) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
