Meridian Hedged Equity Fund’s Q4 2025 Investor Letter

Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Hedged Equity Fund”. U.S. equity markets experienced a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment cooled later in the quarter. Despite this moderation, the quarter contributed positively to robust annual results. In Q4 2025, the Fund gained 0.08% compared to the S&P 500 Index’s 2.66% return and its secondary benchmark, the CBOE S&P 500 BuyWrite Index’s 6.53% return. As the market heads into 2026, the firm is closely watching factors that may affect market returns, including monetary policy and the sustainability of AI investments in the face of high valuations. In this environment, the firm continues its disciplined, bottom-up fundamental research and prudent risk management. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

A copy of Meridian Hedged Equity Fund’s Q4 2025 investor letter can be downloaded here.