Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -6.16% (net) compared to a -4.78% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned -3.66% during the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Contrarian Fund highlighted stocks like American Superconductor Corporation (NASDAQ:AMSC) in the third quarter 2023 investor letter. Headquartered in Ayer, Massachusetts, American Superconductor Corporation (NASDAQ:AMSC) provides megawatt-scale power resiliency solutions. On November 29, 2023, American Superconductor Corporation (NASDAQ:AMSC) stock closed at $9.25 per share. One-month return of American Superconductor Corporation (NASDAQ:AMSC) was 44.53%, and its shares gained 146.01% of their value over the last 52 weeks. American Superconductor Corporation (NASDAQ:AMSC) has a market capitalization of $280.446 million.
Meridian Contrarian Fund made the following comment about American Superconductor Corporation (NASDAQ:AMSC) in its Q3 2023 investor letter:
“American Superconductor Corporation (NASDAQ:AMSC) designs and manufactures power electronics and control systems for electricity transmission, distribution, and infrastructure. End markets include electric grids, wind power, industrial and naval. We became interested in the company long after it suffered a long-term earnings decline beginning in 2010 when their largest customer – Chinese wind turbine manufacturer Sinovel – engaged in IP theft by copying American Superconductor’s technology and dropping them as a supplier, causing revenues to crater from $320m to $80m within two years. Since then, the company, helped by a litigation win against Sinovel, has diversified its technology portfolio and expanded its customer base. Our investment thesis was that the rebuilt company was in a good position to resume earnings growth with significant upside potential driven by demand for electric grid upgrades, growth of wind power, and naval program wins. American Superconductor is a small company with many useful technologies that address large end-markets, and traction in any one of them could lead to significant growth. The stock performed strongly in the quarter due to excitement about a widely publicized development in superconductor technology that led to a brief frenzy in the stock. We sold most of our position into this speculative strength while maintaining a small position given our belief that over time there could be further upside.”
A wind turbine farm in motion, capturing renewable energy as the sun sets.
American Superconductor Corporation (NASDAQ:AMSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held American Superconductor Corporation (NASDAQ:AMSC) at the end of third quarter which was 9 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.