Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -10.24% (net) in the third quarter compared to the Russell 2000 Growth Index’s -7.32% return. Overall, underperformance during the quarter resulted from the market’s muted or occasionally negative response to macroeconomic reports, even though several of the firms the strategy owned exceeded earnings estimates and improved outlook. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Meridian Small Cap Growth Fund highlighted stocks like Hudson Technologies, Inc. (NASDAQ:HDSN) in its Q3 2023 investor letter. Headquartered in Woodcliff Lake, New Jersey, Hudson Technologies, Inc. (NASDAQ:HDSN) is a refrigerant service-providing company. On December 22, 2023, Hudson Technologies, Inc. (NASDAQ:HDSN) stock closed at $13.19 per share. One-month return of Hudson Technologies, Inc. (NASDAQ:HDSN) was 2.49%, and its shares gained 31.90% of their value over the last 52 weeks. Hudson Technologies, Inc. (NASDAQ:HDSN) has a market capitalization of $600.177 million.
Meridian Small Cap Growth Fund made the following comment about Hudson Technologies, Inc. (NASDAQ:HDSN) in its Q3 2023 investor letter:
“Hudson Technologies, Inc. (NASDAQ:HDSN) is the market leader in recycled and reclaimed refrigerants with proprietary reclamation technology and a national distribution network. We have owned shares of the company for several years due to our belief that its leading position would allow the company to capitalize on improving supply-demand dynamics from the Environmental Protection Agency’s (EPA’s) phaseout of R-22 (refrigerant used in air conditioners), and continued implementation of the AIM Act which will reduce virgin HFC production by a cumulative 40% beginning in 2024. Like the phaseout of R-22, we believe this will result in strong supply[1]demand dynamics for reclaimed HFC refrigerants and allow Hudson to capitalize on its market-leading position. As summer heat took hold after a cooler-than-normal early season, inventories were drawn down, and overall pricing stayed healthy and robust, contributing to a better-than[1]expected quarter. Looking forward, the secular backdrop remains favorable. The company’s strong free cash flow has allowed it to pay off nearly all its debt, thereby strengthening the financial profile of the company. We trimmed our position based on our valuation discipline as the share price appreciated during the period.”
Hudson Technologies, Inc. (NASDAQ:HDSN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Hudson Technologies, Inc. (NASDAQ:HDSN) at the end of third quarter which was 15 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.
