Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Hedged Equity Fund”. A copy of the letter can be downloaded here. U.S. equity markets experienced a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment cooled later in the quarter. Despite this moderation, the quarter contributed positively to robust annual results. In Q4 2025, the Fund gained 0.08% compared to the S&P 500 Index’s 2.66% return and its secondary benchmark, the CBOE S&P 500 BuyWrite Index’s 6.53% return. As the market heads into 2026, the firm is closely watching factors that may affect market returns, including monetary policy and the sustainability of AI investments in the face of high valuations. In this environment, the firm continues its disciplined, bottom-up fundamental research and prudent risk management. 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 Hedged Equity Fund highlighted MGM Resorts International (NYSE:MGM) as a key contributor to portfolio performance. MGM Resorts International (NYSE:MGM) is a leading gaming and entertainment company based in Las Vegas, Nevada. On February 13, 2026, MGM Resorts International (NYSE:MGM) stock closed at $34.14 per share. One-month return of MGM Resorts International (NYSE:MGM) was -2.40%, and its shares are down 14.24% over the past twelve months. MGM Resorts International (NYSE:MGM) has a market capitalization of $9.321 billion.
Meridian Hedged Equity Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2025 investor letter:
“MGM Resorts International (NYSE:MGM) is a global hospitality and entertainment company with a diversified portfolio of casino resorts across Las Vegas, U.S. regional markets, and Macau, as well as a growing digital presence through its joint venture, BetMGM. We own MGM for its premier assets in Las Vegas, leverage to the gaming recovery in Macau, its rapidly scaling online business, and its demonstrated commitment to returning capital to shareholders. The stock moved higher during the quarter as investor sentiment was buoyed by record results from MGM’s Macau properties and the announcement that BetMGM, having achieved profitability for the first time, would begin returning capital to shareholders.”
