Meridian Small Cap Growth Fund’s Q2 2026 Investor Letter

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. The U.S. market saw a strong rally in the second quarter, fueled by easing geopolitical tensions, falling oil prices, and robust corporate earnings. Growth stocks, especially in technology and healthcare, led the charge, supported by AI-related investments from hyperscalers that added momentum. Meanwhile, traditional safe havens like gold declined. In this context, the Meridian Small Cap Growth Fund (the “Fund”) achieved a 21.54% return for the quarter ending June 30, 2026. This lagged behind its benchmark, the Russell 2000 Growth Index, which gained 25.71%, due to factor and style headwinds—as high-beta and momentum stocks soared, its lower-volatility, quality-focused holdings underperformed. The Fund continues to prioritize quality businesses, risk management, and downside protection, with portfolio adjustments driven by strategic allocation. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

A copy of Meridian Small Cap Growth Fund’s Q2 2026 investor letter can be downloaded here.