Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter can be downloaded here. The U.S. market saw a strong rally in the second quarter, fueled by easing geopolitical tensions, falling oil prices, and robust corporate earnings. Growth stocks, especially in technology and healthcare, led the charge, supported by AI-related investments from hyperscalers that added momentum. Meanwhile, traditional safe havens like gold declined. In this context, the Meridian Small Cap Growth Fund (the “Fund”) achieved a 21.54% return for the quarter ending June 30, 2026. This lagged behind its benchmark, the Russell 2000 Growth Index, which gained 25.71%, due to factor and style headwinds—as high-beta and momentum stocks soared, its lower-volatility, quality-focused holdings underperformed. The Fund continues to prioritize quality businesses, risk management, and downside protection, with portfolio adjustments driven by strategic allocation. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Meridian Small Cap Growth Fund highlighted Tandem Diabetes Care, Inc. (NASDAQ:TNDM). Headquartered in San Diego, California, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company that offers technology solutions for people living with diabetes. On July 29, 2026, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) closed at $18.59 per share, reflecting a market capitalization of $1.27 billion. Tandem Diabetes Care, Inc. (NASDAQ:TNDM) posted a one-month return of 21.34%, while its shares gained 19.32% over the past 52 weeks.
Meridian Small Cap Growth Fund stated the following regarding Tandem Diabetes Care, Inc. (NASDAQ:TNDM) in its Q2 2026 investor update:
“Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company focused on insulin delivery, best known for its t:slim X2 and Mobi automated insulin pumps. We own it for its differentiated pump technology, growing installed base, and the recurring supply revenue that expands with its user base. Shares declined during the quarter as the company’s transition to a pharmacy-based, pay-as-you-go reimbursement model clouded near-term revenue visibility, and second-quarter guidance came in below expectations even as the underlying quarter was broadly in line. Heightened attention to a new competing patch-pump entrant added to the caution, and the name’s lower-beta profile lagged in a market that favored higher-beta and non-earning stocks; we continue to believe the reimbursement transition is a long-term positive.”
Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Tandem Diabetes Care, Inc. (NASDAQ:TNDM) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) 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 Tandem Diabetes Care, Inc. (NASDAQ:TNDM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tandem Diabetes Care, Inc. (NASDAQ:TNDM) and shared the list of best get rich quick stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
