Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. U.S. equity markets experienced a quarter shaped by optimism around potential monetary easing and caution related to economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October. However, market sentiment cooled later in the quarter due to mixed signals from the Fed regarding future policy. Despite this moderation, the quarter contributed positively to robust annual results, with large caps rising 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter. Value stocks outperformed growth, returning 3.3% versus 1.2% for the quarter. Market factors and sector effects were mixed in the quarter. Against this backdrop, the Fund delivered a return of -0.39% (net) in the quarter, underperforming the Russell 2500 Growth Index’s 0.33% return. As the market heads into 2026, the firm is closely watching the factors that may affect market returns, including monetary policy changes with a new Fed Chair and the sustainability of AI investments due to high valuations among hyperscalers. The firm continues to focus on high-quality businesses with strong competitive advantages, solid balance sheets, and clear sustainable earnings growth. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Meridian Growth Fund highlighted Remitly Global, Inc. (NASDAQ:RELY) as one of its leading relative detractors. Remitly Global, Inc. (NASDAQ:RELY) is a financial services company that offers digital financial services for immigrants, their families, and other citizens. Remitly Global, Inc. (NASDAQ:RELY) shares traded between $12.08 and $27.32 over the past 52 weeks. On January 26, 2026, Remitly Global, Inc. (NASDAQ:RELY) stock closed at $14.39 per share. One-month return of Remitly Global, Inc. (NASDAQ:RELY) was 3.82%, and its shares lost 13.52% of their value over the last three months. Remitly Global, Inc. (NASDAQ:RELY) has a market capitalization of $3.008 billion.
Meridian Growth Fund stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its fourth quarter 2025 investor letter:
“Remitly Global, Inc. (NASDAQ:RELY) is a digitally native money transfer firm strategically capturing market share in the cross-border remittance space, competing effectively against established players such as Western Union and MoneyGram. The company has reached a scale that positions it for potentially substantial improvements in profitability going forward. Despite reporting robust quarterly earnings, the stock underperformed during the quarter, influenced by management’s guidance indicating a deceleration in revenue growth compared to previous periods. This tempered outlook stems from challenging year-over-year comparisons and, to a lesser extent, immigration-related headwinds affecting remittance volumes. Nevertheless, Remitly continues to expand its market presence even amid a temporarily subdued demand environment.”
