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 Vivid Seats Inc. (NASDAQ:SEAT), in the third quarter 2024 investor letter. Vivid Seats Inc. (NASDAQ:SEAT) is an online ticket marketplace that operates in two segments, Marketplace and Resale. The one-month return of Vivid Seats Inc. (NASDAQ:SEAT) was -16.02%, and its shares lost 59.39% of their value over the last 52 weeks. On November 27, 2024, Vivid Seats Inc. (NASDAQ:SEAT) stock closed at $3.46 per share with a market capitalization of $718.798 million.
Meridian Small Cap Growth Fund stated the following regarding Vivid Seats Inc. (NASDAQ:SEAT) in its Q3 2024 investor letter:
“Vivid Seats Inc. (NASDAQ:SEAT) is an online ticket marketplace that connects fans of live events with ticket sellers. While the company has executed well, top-line revenue growth has been challenging. Two of its competitors, looking to enhance near-term value before going public, are aggressively crowding the online advertising market, placing pressure on Vivid Seats’ visibility, sales, and topline growth. Also weighing on the stock are market concerns about a potentially weakening environment for live concerts and recurring stock sales from the company’s private equity partner. Despite these pressures, we remain confident in the company’s prospects and held our position steady during the period.”
A line of eager ticket buyers outside a theatre on opening night showing the demand for live events.
Vivid Seats Inc. (NASDAQ:SEAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Vivid Seats Inc. (NASDAQ:SEAT) at the end of the third quarter which was 24 in the previous quarter. In the third quarter, Vivid Seats Inc. (NASDAQ:SEAT) delivered $34 million of adjusted EBITDA, which was slightly higher year-over-year. While we acknowledge the potential of Vivid Seats Inc. (NASDAQ:SEAT) 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 Vivid Seats Inc. (NASDAQ:SEAT) and shared the list of worst communication services stocks to buy according to short sellers. 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.