Meridian Funds, managed by ArrowMark Companions, launched its “Meridian Small Cap Progress Fund” second-quarter 2025 investor letter. A duplicate of the letter may be downloaded right here. Throughout the quarter, fairness markets skilled a big rebound, rising by 23% from their lowest factors inside the interval to achieve new file highs. On this surroundings, the fund returned 6.96% (web) within the second quarter in comparison with the Russell 2000 Progress Index’s 11.97% return. As well as, please examine the fund’s high 5 holdings to know its greatest picks in 2025.
In its second-quarter 2025 investor letter, the Meridian Small Cap Progress Fund highlighted shares reminiscent of Axogen, Inc. (NASDAQ:AXGN). Axogen, Inc. (NASDAQ:AXGN) is a healthcare firm specializing in growing and commercializing applied sciences for peripheral nerve regeneration and restore. Axogen, Inc. (NASDAQ:AXGN) inventory gained 14.12% over the previous month, and its shares appreciated 18.89% in worth over the past 52 weeks. On August 19, 2025, Axogen, Inc. (NASDAQ:AXGN) inventory closed at $15.36 per share, with a market capitalization of $706.754 million.
Meridian Small Cap Progress Fund said the next relating to Axogen, Inc. (NASDAQ:AXGN) in its second quarter 2025 investor letter:
“Axogen, Inc. (NASDAQ:AXGN) is a frontrunner within the growth of applied sciences targeted on peripheral nerve regeneration and restore. The corporate’s biologically lively nerve graft platform reduces procedural dangers by eliminating the necessity for secondary surgical websites. Throughout the quarter, Axogen reported top-line progress of 17% and reaffirmed its full-year steering for each income progress and gross margin. Regardless of this optimistic momentum, shares declined following a weaker-than anticipated Q1 gross margin of 72%, which got here in beneath the corporate’s guided vary of 73–75%. The shortfall was attributed to a one-time stock adjustment and ongoing manufacturing transition. We consider the ramp-up of Axogen’s new manufacturing facility positions the corporate for long-term margin enlargement, with the potential to exceed 80% gross margins. Given our conviction within the operational enchancment anticipated within the second half of the 12 months, we added to our place throughout the interval.”
An orthopedic surgeon connecting peripheral nerves with AxoGuard Nerve Connector, displaying the precision and care of AxoGuard’s merchandise.
Axogen, Inc. (NASDAQ:AXGN) isn’t on our checklist of 30 Most Widespread Shares Amongst Hedge Funds. As per our database, 27 hedge fund portfolios held Axogen, Inc. (NASDAQ:AXGN) on the finish of the primary quarter, which was 24 within the earlier quarter. Within the second quarter of 2025, Axogen, Inc.’s (NASDAQ:AXGN) gross sales elevated 18.3% year-over-year to $56.7 million. Whereas we acknowledge the potential of Axogen, Inc. (NASDAQ:AXGN) as an funding, we consider sure AI shares supply better upside potential and carry much less draw back danger. When you’re in search of an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
