Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Hedged Equity Fund”. A copy of the letter can be downloaded here. The Fund invests in high-quality growth companies and mitigates risk by writing call options. Following the late-February strike on Iran, oil prices surged, leading to a risk-off sentiment, boosting energy sector performance. Large-cap technology stocks declined as investors rotated towards smaller companies and more defensive value investments. Market conditions are becoming challenging due to reduced expectations for a Federal Reserve rate cut and increasing geopolitical uncertainty. The Fund returned 0.08% (net) for the quarter, outperforming the S&P 500 Index, which fell 4.33%, and the CBOE S&P 500 BuyWrite Index, which declined 0.92%. At the end of the period, 43% of the portfolio was unhedged, while the remainder was invested in companies with covered call options. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Meridian Hedged Equity Fund highlighted Chevron Corporation (NYSE:CVX) as a leading contributor. Chevron Corporation (NYSE:CVX) is a leading integrated energy company that operates through Upstream, Downstream, and All Other segments. On June 26, 2026, Chevron Corporation (NYSE:CVX) closed at $171.06 per share, reflecting a market capitalization of $340.68 billion. Chevron Corporation (NYSE:CVX) posted one-month return of -7.95%, while its shares gained 19.46% over the past 52 weeks.
Meridian Hedged Equity Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2026 investor letter:
“Chevron Corporation (NYSE:CVX) operates as a globally diversified integrated energy company, with upstream crude oil exploration and production complementing its downstream refinement and retail operations. Our investment thesis is anchored in the company’s strict capital discipline, its highly efficient Permian Basin footprint, and the strategic benefits expected from the integration of recently acquired Hess Corporation. Together, these strengths support the potential for durable free-cash-flow generation, consistent dividend growth, and steady share repurchases across commodity cycles. Chevron’s stock benefited in March from a sharp rise in oil prices following supply disruptions, but performance was also supported by better-than-expected earnings earlier in the quarter. These results reinforced confidence in the company’s management team, operational strength and financial discipline. We maintained our position throughout the quarter.”
Chevron Corporation (NYSE:CVX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 103 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the first quarter, up from 86 in the previous quarter. While we acknowledge the risk and potential of Chevron Corporation (NYSE:CVX) 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 Chevron Corporation (NYSE:CVX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chevron Corporation (NYSE:CVX) and shared the list of best stocks to buy for good returns. In addition, please check out our hedge fund investor letters Q1 2026 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.
