Meridian Growth Fund Reduced its Position in Alight (ALIT) in Q3

3 weeks ago 11

Soumya Eswaran

Mon, December 1, 2025 astatine 6:38 AM CST 3 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equities deed a grounds precocious successful the 3rd quarter, fueled by continued gains successful exertion and falling enslaved yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted ample tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 ground points. Against this backdrop, the money returned -1.78% (net) compared to the Russell 2500 Growth Index’s 10.73% return. Sector positioning and the avoidance of names that bash not conscionable the firm’s strict concern subject led to the underperformance of the money successful the quarter. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Meridian Growth Fund highlighted stocks specified arsenic Alight, Inc. (NYSE:ALIT). Alight, Inc. (NYSE:ALIT) is simply a starring technology-enabled services company. The one-month instrumentality of Alight, Inc. (NYSE:ALIT) was -17.45%, and its shares mislaid 71.66% of their worth implicit the past 52 weeks. On November 28, 2025, Alight, Inc. (NYSE:ALIT) banal closed astatine $2.31 per share, with a marketplace capitalization of $1.269 billion.

Meridian Growth Fund stated the pursuing regarding Alight, Inc. (NYSE:ALIT) successful its 3rd 4th 2025 capitalist letter:

"Alight, Inc. (NYSE:ALIT) is simply a starring cloud-based quality superior exertion supplier of enterprise-level bundle that helps businesses and their employees negociate captious quality resources functions. Through its investments successful bundle and automation, Alight has built a chiseled vantage that allows its customers to present HR services astatine a overmuch little outgo portion providing a amended acquisition for employees. The banal underperformed during the 4th pursuing disappointing income and lowered gross guidance. A year-long exertion transformation— migrating services to the cloud, integrating AI capabilities, and coinciding with CEO and CFO changes—proved much disruptive than anticipated. Customer retention declined from ~98% to ~93%, and caller income remained brushed amid execution challenges and a weaker macro environment. Cost controls person stabilized EBITDA, but gross normalization whitethorn instrumentality years alternatively than quarters. Given this mixed outlook, but recognizing the stock’s compelling valuation, we reduced our presumption during the period."

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Alight, Inc. (NYSE:ALIT) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge money portfolios held Alight, Inc. (NYSE:ALIT) astatine the extremity of the 3rd quarter, which was 30 successful the erstwhile quarter. In Q3 2025, Alight, Inc. (NYSE:ALIT) reported gross of $533 cardinal compared to $555 cardinal a twelvemonth earlier. While we admit the imaginable of Alight, Inc. (NYSE:ALIT) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.