Meridian Funds, managed by ArrowMark Partners, reported a decline of -1.36% (net) in its “Meridian Hedged Equity Fund” in the third quarter of 2023. Despite this decrease, the fund managed to outperform its benchmark, the S&P 500 index, which fell by -3.27%. The company attributes its success to investments in high-quality long-term growth enterprises.
In its third-quarter investor letter, the Meridian Hedged Equity Fund highlighted one of its key holdings, Apple Inc. (NASDAQ: AAPL). This international technology company, based in Cupertino, California, is known for designing and manufacturing smartphones, personal computers, tablets, wearable electronic devices, and accessories.
During this quarter, Apple Inc. (NASDAQ: AAPL) closed at $193.60 per share. It experienced a 1.91% increase over one month and a 46.82% year-over-year growth. With a market capitalization of $3.028 trillion, Apple Inc. (NASDAQ: AAPL) solidified its position as a leader in the technology industry.
Meridian Hedged Equity Fund expressed confidence in Apple Inc. (NASDAQ: AAPL) due to its ability to design innovative technologies for individual customers and offer a wide range of services, resulting in strong brand loyalty and a stable revenue stream. Despite concerns about slowing product revenue growth, the company expects Apple’s ecosystem, service offerings, and product innovations to continue contributing to profitability.
However, challenges in the Chinese market have been observed. The Chinese government issued a directive to select officials not to use foreign devices such as iPhones, which was seen as a retaliatory response to restrictions on technology exports from the United States. Additionally, the introduction of Huawei’s new advanced smartphone posed a potential competitive challenge. Nevertheless, Meridian Hedged Equity Fund believes that Apple’s strong technological advantages and established market share in China will help it overcome these difficulties.
Overall, Meridian Funds remains confident in Apple Inc. (NASDAQ: AAPL) and its fundamental growth prospects. As of the end of the third quarter of 2023, 134 hedge fund portfolios held Apple Inc. (NASDAQ: AAPL), confirming its popularity among investors.
Source: [Meridian Funds](https://www.meridianfunds.com/)
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