Here's What Lifted Globus Medical (GMED) in Q4

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. U.S. equity markets experienced a quarter shaped by optimism around potential monetary easing and caution related to economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October. However, market sentiment cooled later in the quarter due to mixed signals from the Fed regarding future policy. Despite this moderation, the quarter contributed positively to robust annual results, with large caps rising 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter. Value stocks outperformed growth, returning 3.3% versus 1.2% for the quarter. Market factors and sector effects were mixed in the quarter. Against this backdrop, the Fund delivered a return of -0.39% (net) in the quarter, underperforming the Russell 2500 Growth Index’s 0.33% return. As the market heads into 2026, the firm is closely watching the factors that may affect market returns, including monetary policy changes with a new Fed Chair and the sustainability of AI investments due to high valuations among hyperscalers. The firm continues to focus on high-quality businesses with strong competitive advantages, solid balance sheets, and clear sustainable earnings growth. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Meridian Growth Fund highlighted Globus Medical, Inc. (NYSE:GMED) as one of its leading contributors. Globus Medical, Inc. (NYSE:GMED) is a medical device company that focuses on the development of healthcare solutions for patients with musculoskeletal disorders. The one-month return of Globus Medical, Inc. (NYSE:GMED) was 5.77%, and its shares gained 0.04% of their value over the last 52 weeks. On January 26, 2026, Globus Medical, Inc. (NYSE:GMED) stock closed at $92.98 per share, with a market capitalization of $12.558 billion.

Meridian Growth Fund stated the following regarding Globus Medical, Inc. (NYSE:GMED) in its fourth quarter 2025 investor letter:

"Globus Medical, Inc. (NYSE:GMED) is a medical technology company focused on spine implants and motion preservation solutions. The stock outperformed during the quarter, driven by management’s report of a re-acceleration in the core spine business to double-digit growth and evidence of renewed market share gains. Integration and profitability metrics from prior acquisitions are tracking ahead of expectations, and with most integration initiatives substantially complete, the company appears well-positioned to benefit from improved operating leverage in 2026."

Globus Medical, Inc. (NYSE:GMED) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Globus Medical, Inc. (NYSE:GMED) at the end of the third quarter, compared to 49 in the previous quarter. While we acknowledge the potential of Globus Medical, Inc. (NYSE:GMED) 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 Globus Medical, Inc. (NYSE:GMED) and shared Antipodes Global Value Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.