Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. On September 18th, the U.S. Federal Reserve (“Fed”) reduced interest rates by 0.5%, bringing much-needed relief to investors. This crucial action contributed to stabilizing the markets following a volatile August. During the quarter, small-cap stocks outperformed large-cap stocks, achieving gains of 9.3% and 6.1%, respectively, according to the Russell family of indices. In the quarter, the fund returned 6.78% (net) outperforming the benchmark, the Russell 2500 Growth Index’s 6.99% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Growth Fund highlighted stocks like Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud platform for medical professionals. The one-month return of Doximity, Inc. (NYSE:DOCS) was 27.15%, and its shares gained 123.20% of their value over the last 52 weeks. On November 27, 2024, Doximity, Inc. (NYSE:DOCS) stock closed at $53.39 per share with a market capitalization of $9.967 billion.
Meridian Growth Fund stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter:
“Doximity, Inc. (NYSE:DOCS) operates a digital platform tailored for medical providers, functioning similarly to LinkedIn for healthcare professionals. Its cloud-based tools facilitate collaboration, patient care, virtual visits, medical news, research, and career management. With approximately 80% of U.S. doctors using Doximity, the platform presents a significant advertising opportunity, especially for pharmaceutical companies. The stock performed strongly during the quarter, driven by robust revenue growth and margin expansion. Additionally, the introduction of a new portal allowing pharmaceutical clients to self-manage marketing campaigns could further enhance market share. During the quarter, we trimmed the stock as the share price appreciated based on our valuation discipline.”
A pathologist and a laboratory assistant in a laboratory researching medical news and data.
Doximity, Inc. (NYSE:DOCS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the second quarter which was 26 in the previous quarter. In the second quarter of fiscal 2025, Doximity, Inc. (NYSE:DOCS) delivered $137 million of revenue, which represents 20% year-on-year increase and a 7% above the high end of guidance range. While we acknowledge the potential of Doximity, Inc. (NYSE:DOCS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Doximity, Inc. (NYSE:DOCS) and shared Polen U.S. Small Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.