Strong Business Performance Lifted RB Global (RBA) in Q1

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  Uncertainty surrounding prospective tariff policies weighed on investor sentiment and risk assets in the quarter, leading U.S. equities to experience their weakest performance since 2022.  Value stocks outperformed their growth counterparts within the small-cap space. Against this backdrop, the fund returned -8.01% (net) compared to the Russell 2500 Growth Index’s -10.80% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Meridian Growth Fund highlighted stocks such as RB Global, Inc. (NYSE:RBA). RB Global, Inc. (NYSE:RBA) is a marketplace that offers insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles. The one-month return of RB Global, Inc. (NYSE:RBA) was 3.29%, and its shares gained 44.90% of their value over the last 52 weeks. On June 3, 2025, RB Global, Inc. (NYSE:RBA) stock closed at $105.52 per share with a market capitalization of $19.573 billion.

Meridian Growth Fund stated the following regarding RB Global, Inc. (NYSE:RBA) in its Q1 2025 investor letter:

“RB Global, Inc. (NYSE:RBA) operates a global marketplace for salvage vehicles through its IAA subsidiary and for used industrial equipment via its Ritchie Bros. unit. With a broad international network and significant scale advantages, we believe the company is well-positioned to gain further market share. Shares advanced during the quarter on strong business performance that exceeded expectations, supported by solid incremental EBITDA margins in the mid 50% range. Integration of the IAA acquisition also appears to be progressing ahead of schedule, reinforcing expectations for improved financial performance. We reduced our position during the quarter following the stock’s appreciation.”

A manned excavator operating on a construction site, revealing the company’s commitment to building infrastructure.

RB Global, Inc. (NYSE:RBA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held RB Global, Inc. (NYSE:RBA) at the end of the first quarter, which was 32 in the previous quarter. While we acknowledge the potential of RB Global, Inc. (NYSE:RBA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered RB Global, Inc. (NYSE:RBA) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.