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 Clear Secure, Inc. (NYSE:YOU) as a key contributor to portfolio performance. Clear Secure, Inc. (NYSE:YOU) operates a biometric identification platform under the CLEAR brand that enables faster access to airport security checkpoints, as well as a broader network. On February 13, 2026, Clear Secure, Inc. (NYSE:YOU) stock closed at $32.50 per share. One-month return of Clear Secure, Inc. (NYSE:YOU) was -6.93%, and its shares are up 44.19% over the past twelve months. Clear Secure, Inc. (NYSE:YOU) has a market capitalization of $4.382 billion.
Meridian Hedged Equity Fund stated the following regarding Clear Secure, Inc. (NYSE:YOU) in its fourth quarter 2025 investor letter:
“Clear Secure, Inc. (NYSE:YOU) provides biometric identity and access solutions that enable faster and more secure experiences for travelers and venue participants. We view Clear as an innovative disruptor in identity verification technology that has tapped into the growing demand for enhanced security and convenience.”
Clear Secure, Inc. (NYSE:YOU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Clear Secure, Inc. (NYSE:YOU) at the end of the third quarter, up from 26 in the previous quarter. While we acknowledge the potential of Clear Secure, Inc. (NYSE:YOU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
