Meridian Growth Fund Decided to Hold Ziff Davis (ZD)

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets made a significant rebound during the quarter, increasing 23% from intra-period lows to close at record highs. Against this backdrop, the fund returned 4.10% (net) compared to the Russell 2500 Growth Index’s 11.31% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Meridian Growth Fund highlighted stocks such as Ziff Davis, Inc. (NASDAQ:ZD). Ziff Davis, Inc. (NASDAQ:ZD) is a digital media and internet company. The one-month return of Ziff Davis, Inc. (NASDAQ:ZD) was 10.95%, and its shares lost 18.95% of their value over the last 52 weeks. On August 11, 2025, Ziff Davis, Inc. (NASDAQ:ZD) stock closed at $34.35 per share, with a market capitalization of $1.408 billion.

Meridian Growth Fund stated the following regarding Ziff Davis, Inc. (NASDAQ:ZD) in its second quarter 2025 investor letter:

"Ziff Davis, Inc. (NASDAQ:ZD) operates businesses in two primary segments: business cloud services and digital media. The company delivered solid results for the quarter, beating revenue and EBITDA expectations while management confirmed annual guidance and called for accelerating quarterly growth. However, shares came under pressure as investors did not see enough evidence of improved organic growth or significant acquisitions. We continue to hold the stock based on our confidence in management’s proven value-creation strategy and history of disciplined acquisitions.

We were encouraged by early signs that the company’s acquisition strategy is beginning to bear fruit and believe it is nearing an inflection point for improved organic growth, which we view as a potential catalyst for investor sentiment. In addition, Ziff Davis recently filed a copyright infringement lawsuit against OpenAI, which could result in a favorable settlement over the intermediate term. We modestly trimmed our position in the company during the period."

Ziff Davis, Inc. (NASDAQ:ZD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Ziff Davis, Inc. (NASDAQ:ZD) at the end of the first quarter, which was 14 in the previous quarter. In the second quarter of 2025, Ziff Davis, Inc. (NASDAQ:ZD) revenues were $352.2 million compared to $320.8 million in Q2 2024. While we acknowledge the potential of Ziff Davis, Inc. (NASDAQ:ZD) 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.

In another article, we covered Ziff Davis, Inc. (NASDAQ:ZD) and shared Meridian Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 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.