Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities hit a record high in the third quarter, fueled by continued gains in technology and falling bond yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted large tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 basis points. In this environment, the fund returned 6.72% (net) during the quarter, underperforming the 9.00% returns of the Russell 2500 Index and 8.18% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Meridian Contrarian Fund highlighted stocks such as Perrigo Company plc (NYSE:PRGO). Perrigo Company plc (NYSE:PRGO) is an over-the-counter health and wellness solutions provider. The one-month return of Perrigo Company plc (NYSE:PRGO) was -34.97%, and its shares lost 53.13% of their value over the last 52 weeks. On November 28, 2025, Perrigo Company plc (NYSE:PRGO) stock closed at $13.35 per share, with a market capitalization of $1.837 billion.
Meridian Contrarian Fund stated the following regarding Perrigo Company plc (NYSE:PRGO) in its third quarter 2025 investor letter:
“Perrigo Company plc (NYSE:PRGO) is the leading in-store brand for consumer wellness and self-care products. The company endured several years of declining earnings due to what we believe was poor capital allocation by its previous management team, which chased growth through acquisitions outside of Perrigo’s core business. Our investment in Perrigo was inspired by a new management team that committed to pursuing realistic, steady growth rates within the core business, and the company delivering improved profitability and returns on capital. The stock underperformed during the quarter as earnings were guided to the low end of the previously given range due to sales and margin headwinds in their recovering infant formula business. While the fundamental difference in the guide down was small, investor patience has worn thin after years of delayed improvement. We continue to hold Perrigo in the portfolio.”
Perrigo Company plc (NYSE:PRGO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Perrigo Company plc (NYSE:PRGO) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of Perrigo Company plc (NYSE:PRGO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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