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Meridian Growth Fund Posts Slight Q4 Loss, Trails Russell 2500 Growth

The investor letter pivots to 2026 risks, emphasizing policy leadership uncertainty.

Overview

  • The fund returned -0.39% net in Q4 2025 versus a 0.33% gain for the Russell 2500 Growth Index.
  • Early-quarter momentum from AI-driven earnings and an October Fed rate cut faded as mixed policy signals cooled sentiment.
  • Exact Sciences was a top contributor, boosted after Abbott announced plans in November to acquire the company at a significant premium.
  • Globus Medical outperformed on double-digit growth in its core spine business and acquisition integrations tracking ahead of expectations.
  • Remitly detracted after guidance signaled slower revenue growth and immigration-related pressure on remittance volumes, as managers focus on new Fed leadership, AI valuation risks, and high-quality holdings.