Meridian Small Cap Growth Fund Maintained its Position in Viper Energy Inc (VNOM)

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here.  During the quarter, equity markets experienced a significant rebound, increasing by 23% from their lowest points within the period to reach new record highs. In this environment, the fund returned 6.96% (net) in the second quarter compared to the Russell 2000 Growth Index’s 11.97% 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, the Meridian Small Cap Growth Fund highlighted stocks such as Viper Energy, Inc. (NASDAQ:VNOM). Viper Energy, Inc. (NASDAQ:VNOM) is an energy company that owns mineral and royalty interests in oil and natural gas properties. Viper Energy, Inc. (NASDAQ:VNOM) stock fell 0.95% over the past month, and its shares declined 19.13% in value over the last 52 weeks. On August 19, 2025, Viper Energy, Inc. (NASDAQ:VNOM) stock closed at $37.37 per share, with a market capitalization of $10.783 billion.

Meridian Small Cap Growth Fund stated the following regarding Viper Energy, Inc. (NASDAQ:VNOM) in its second quarter 2025 investor letter:

"Viper Energy, Inc. (NASDAQ:VNOM) owns and acquires mineral and royalty assets in oil and natural gas properties in the Permian Basin. We like Viper’s royalty-based business model, which provides more consistent and lower-risk exposure to energy markets. The model offers greater visibility into asset development, typically a source of uncertainty in the mineral rights or royalty businesses. The stock underperformed during the period when OPEC+ raised production, sending oil prices and related equities lower. The stock further lagged when oil-price spikes spurred by the Israel-Iran conflict were viewed as temporary and failed to stir recovery in Viper and other commodity-related equities. During the period, we maintained our position."

Viper Energy, Inc. (NASDAQ:VNOM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Viper Energy, Inc. (NASDAQ:VNOM) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of Viper Energy, Inc. (NASDAQ:VNOM) 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 Viper Energy, Inc. (NASDAQ:VNOM) and shared the list of best dividend stocks with a consistent 3-year payout history. 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.