Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The significant move of the Fed to cut interest rates helped stabilize the market. Small caps outperformed large caps in the quarter. The fund returned 6.15% (net) in the third quarter compared to the Russell 2000 Growth Index’s 8.41% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Small Cap Growth Fund highlighted stocks like Stoneridge, Inc. (NYSE:SRI), in the third quarter 2024 investor letter. Stoneridge, Inc. (NYSE:SRI) is an engineered electrical and electronic systems, components, and modules manufacturer for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets. The one-month return of Stoneridge, Inc. (NYSE:SRI) was -1.86%, and its shares lost 57.13% of their value over the last 52 weeks. On November 27, 2024, Stoneridge, Inc. (NYSE:SRI) stock closed at $6.86 per share with a market capitalization of $189.94 million.
Meridian Small Cap Growth Fund stated the following regarding Stoneridge, Inc. (NYSE:SRI) in its Q3 2024 investor letter:
“Stoneridge, Inc. (NYSE:SRI) develops electronic safety systems primarily for automotive and commercial vehicles. The company provides balanced exposure to the commercial truck and passenger vehicle markets, and we like the potential for one of its flagship products, MirrorEye, which provides its commercial vehicle customers with critical safety benefits, fuel economy gains, and potential savings on insurance premiums. We also see potential in some of the company’s new products and overlooked businesses. The stock struggled during the quarter as lingering delays in the post-pandemic recovery and exposure to the electric vehicle market affected performance. Despite these setbacks, Stoneridge realized improved margins and free cash flow, strengthening its balance sheet, and we maintained our position during the quarter.”
A technician at a workstation, soldering electronic components for vehicle tracking devices.
Stoneridge, Inc. (NYSE:SRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Stoneridge, Inc. (NYSE:SRI) at the end of the third quarter which was 13 in the previous quarter. In the first nine months of the year, Stoneridge, Inc. (NYSE:SRI) generated $13.3 million in cash, primarily due to the ongoing efforts to reduce net working capital. While we acknowledge the potential of Stoneridge, Inc. (NYSE:SRI) 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 Stoneridge, Inc. (NYSE:SRI) and shared the list of best micro cap stocks to buy according to analysts. 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.