Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter is available to download here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Initial gains were attributed to confidence in domestic companies and the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Small Cap Growth Fund returned -8.37% compared to the Russell 2000 Growth Index’s -2.82% return. The Fund’s relative underperformance was driven by industry allocation effects, while stock selection contributed positively. Despite the market environment, the fund prioritizes high-quality businesses characterized by durable competitive advantages, robust balance sheets, and a clear outlook for sustainable earnings growth. 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 Small Cap Growth Fund highlighted stocks like Alkami Technology, Inc. (NASDAQ:ALKT). Alkami Technology, Inc. (NASDAQ:ALKT) operates a leading cloud-based digital sales and service platform for financial institutions. On April 20, 2026, Alkami Technology, Inc. (NASDAQ:ALKT) closed at $17.75 per share. One-month return of Alkami Technology, Inc. (NASDAQ:ALKT) was -2.76%, and its shares gained 2.83% over the past 52 weeks. Alkami Technology, Inc. (NASDAQ:ALKT) has a market capitalization of $1.9 billion.
Meridian Small Cap Growth Fund stated the following regarding Alkami Technology, Inc. (NASDAQ:ALKT) in its Q1 2026 investor letter:
“Alkami Technology, Inc. (NASDAQ:ALKT) is a leading cloud-based digital banking platform serving community banks and credit unions, enabling them to compete with larger institutions through modern digital experiences. The company benefits from a large addressable market of nearly 1,900 institutions still on legacy systems, and its bundled digital sales and service platform is driving higher win rates and increased revenue per user. Shares declined during the quarter as extended implementation timelines for new clients weighed on near term revenue growth expectations, compounded by the broader software selloff. We believe the highly regulated nature of Alkami’s bank and credit union customer base provides meaningful insulation from AI disruption, and that revenue growth should reaccelerate as new client implementations ramp into production.”
Alkami Technology, Inc. (NASDAQ:ALKT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held Alkami Technology, Inc. (NASDAQ:ALKT) at the end of the fourth quarter, up from 14 in the previous quarter. While we acknowledge the risk and potential of Alkami Technology, Inc. (NASDAQ:ALKT) 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 Alkami Technology, Inc. (NASDAQ:ALKT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alkami Technology, Inc. (NASDAQ:ALKT) and shared the list of best small-cap growth stocks to buy according to hedge funds. 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.
