Ranpak Holdings Corp (PACK) Declined in Q2 Despite Strong Demand

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market showcased a significant recovery during the quarter, rising 23% from low to end the quarter at a record high. U.S. large-cap stocks gained 11.1% in the quarter, and within the large-cap category, growth stocks outperformed value stocks. In this environment, the fund returned 16.42% (net) during the quarter, exceeding 8.59% returns of the Russell 2500 Index and 7.29% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Meridian Contrarian Fund highlighted stocks such as Ranpak Holdings Corp. (NYSE:PACK). Headquartered in Concord Township, Ohio, Ranpak Holdings Corp. (NYSE:PACK) offers product protection services for e-commerce and industrial supply chains. The one-month return of Ranpak Holdings Corp. (NYSE:PACK) was -3.03%, and its shares lost 20.37% of their value over the last 52 weeks. On September 25, 2025, Ranpak Holdings Corp. (NYSE:PACK) stock closed at $5.12 per share, with a market capitalization of $431.953 million.

Meridian Contrarian Fund stated the following regarding Ranpak Holdings Corp. (NYSE:PACK) in its second quarter 2025 investor letter:

“Ranpak Holdings Corp. (NYSE:PACK) is a manufacturer of paper-based protective packaging solutions. Among the many things we like about Ranpak is the sustainability of its products, which are environmentally friendly compared to plastic, foam, and other packaging materials. We also like its consumable business model and attractive unit economics. While underlying demand remained strong, the stock declined during the quarter when profitability was pressured by higher input and logistics costs due to unexpected volume spikes. We believe that these issues will prove to be short-lived and expect demand strength, combined with labor-saving automation initiatives, to ultimately position the company for margin recovery and eventual expansion. We originally invested in the company in the second quarter of 2023, when earnings had declined due to inflationary impacts and macro pressures in Europe, and subsequently increased our position during second quarter of 2025, as we still believe the secular shift away from plastics towards paper and ongoing automation improvements will provide a long-term tailwind.”

Ranpak (PACK) Introduces AI-Powered Packaging Innovations to Reduce Waste

Ranpak Holdings Corp. (NYSE:PACK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Ranpak Holdings Corp. (NYSE:PACK) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the risk and potential of Ranpak Holdings Corp. (NYSE:PACK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Ranpak Holdings Corp. (NYSE:PACK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Ranpak Holdings Corp. (NYSE:PACK) and shared Prosper Stars & Stripes’ views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.