Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -4.92% net compared to -0.12% return for the Russell 2500 Growth Index. In the quarter, market dynamics worked against the fund’s investment strategy. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Meridian Funds highlighted stocks like Sotera Health Company (NASDAQ:SHC) in its Q3 2022 investor letter. Headquartered in Broadview Heights, Ohio, Sotera Health Company (NASDAQ:SHC) provides sterilization products and lab testing solutions. On December 6, 2022, Sotera Health Company (NASDAQ:SHC) stock closed at $8.44 per share. One-month return of Sotera Health Company (NASDAQ:SHC) was 39.27% and its shares lost 61.137% of their value over the last 52 weeks. Sotera Health Company (NASDAQ:SHC) has a market capitalization of $2.381 billion.
Meridian Funds made the following comment about Sotera Health Company (NASDAQ:SHC) in its Q3 2022 investor letter:
“Sotera Health Company (NASDAQ:SHC) is a leading provider of sterilization solutions and lab testing services through three operating segments: Sterigenics, Nordion, and Nelson Labs. The company offers mission-critical services to the healthcare industry and counts 40 of the top 50 medical device companies and 8 of the top 10 pharmaceutical companies as customers. As part of its sterilization service portfolio, the company offers ethylene oxide sterilization as a critical modality. In fact, approximately 50% of all medical devices are sterilized with ethylene oxide and in most cases is required by the FDA for effective sterilization and market commercialization. Sotera’s stock declined after a jury ruled in favor of a plaintiff seeking damages for cancer that was believed to be caused by ethylene oxide emissions from a nearby Sterigenics factory. The jury ordered Sterigenics and two related businesses to pay the plaintiff $363 million in damages. The ruling against Sterigenics was unexpected, as ethylene oxide is an EPA-registered antimicrobial and is highly regulated by the EPA, FDA, OSHA, and other state agencies. Furthermore, Sterigenics has a long history of operating in compliance with applicable state and federal regulations. Even though Sotera will appeal the ruling, the company has additional lawsuits pending which will serve as an overhang on the stock. Given the uncertainty, we exited our position in the company.”
Photo by National Cancer Institute on Unsplash
Sotera Health Company (NASDAQ:SHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Sotera Health Company (NASDAQ:SHC) at the end of the third quarter, which was 16 in the previous quarter.
We discussed Sotera Health Company (NASDAQ:SHC) in another article and shared the list of stocks skyrocketing on November 21. In addition, please check out our hedge fund investor letters Q3 2022 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.