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

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here.  During the quarter, equity markets experienced a significant rebound, increasing by 23% from their lowest points within the period to reach new record highs. In this environment, the fund returned 6.96% (net) in the second quarter compared to the Russell 2000 Growth Index’s 11.97% return. 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 Small Cap Growth Fund highlighted stocks such as Ranpak Holdings Corp. (NYSE:PACK). Headquartered in Concord Township, Ohio, Ranpak Holdings Corp. (NYSE:PACK) offers product protection services. The one-month return of Ranpak Holdings Corp. (NYSE:PACK) was 18.72%, and its shares lost 36.48% of their value over the last 52 weeks. On August 18, 2025, Ranpak Holdings Corp. (NYSE:PACK) stock closed at $4.33 per share, with a market capitalization of $365.29 million.

Meridian Small Cap Growth 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 fell in 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 resulting in improving margins over the course of the year. We trimmed the position during the period as the company’s execution has been mixed; however, we still believe the secular shift from plastics to paper and the increasing adoption of labor-saving packaging automation technologies will provide long-term tailwinds.”

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

A factory line of workers working together to assemble protective packaging solutions.

Ranpak Holdings Corp. (NYSE:PACK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Ranpak Holdings Corp. (NYSE:PACK) at the end of the first quarter, which was 22 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 the list of best get rich quick stocks to buy. 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.