Here’s Why Meridian Contrarian Fund is Holding a Large Stake in Penguin Solutions (PENG)

1 week ago 8

Soumya Eswaran

Wed, January 28, 2026 astatine 7:13 AM CST 4 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” fourth-quarter 2025 capitalist letter. A transcript of the aforesaid tin beryllium downloaded here. U.S. equity markets experienced a 4th supported by optimism astir imaginable monetary easing and caution related to economical maturation and valuations. Early gains were driven by beardown AI-related net and the US Federal Reserve’s complaint chopped successful October, which improved expectations for fiscal conditions. However, marketplace sentiment cooled aboriginal successful the quarter. Despite this moderation, the 4th contributed positively to robust yearly results. Value stocks outperformed growth, returning 3.3% versus 1.2% for the quarter. Against this backdrop, the Fund delivered a instrumentality of 2.18% (net) successful the quarter, underperforming the Russell 2500 Index’s 2.22% instrumentality and the secondary benchmark, the Russell 2500 Value Index’ 3.15% return. As the marketplace heads into 2026, the steadfast is intimately watching factors that whitethorn impact marketplace returns, including monetary argumentation changes with a caller Fed Chair and the sustainability of AI investments owed to precocious valuations among hyperscalers. In the unpredictable backdrop, the steadfast concentrates connected its systematic and accordant concern approach, which aims to pinpoint opportunities successful companies that tin execute beardown show careless of macroeconomic factors. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Meridian Contrarian Fund highlighted Penguin Solutions, Inc. (NASDAQ:PENG) arsenic 1 of its starring comparative detractors. Penguin Solutions, Inc. (NASDAQ:PENG) is simply a starring endeavor solutions provider. The one-month instrumentality of Penguin Solutions, Inc. (NASDAQ:PENG) was 1.02%, and its shares gained 2.38% of their worth implicit the past 52 weeks. On January 27, 2026, Penguin Solutions, Inc. (NASDAQ:PENG) banal closed astatine $19.76 per share, with a marketplace capitalization of $1.039 billion.

Meridian Contrarian Fund stated the pursuing regarding Penguin Solutions, Inc. (NASDAQ:PENG) successful its 4th fourth 2025 capitalist letter:

"Penguin Solutions, Inc. (NASDAQ:PENG) is simply a diversified exertion institution that designs and manufactures solutions successful the computing, memory, and LED industries. We archetypal invested successful the institution successful 2020 connected the heels of an net diminution owed to volatility successful the representation business, bid delays successful its precocious show computing segment, and near-term dilution from investments successful caller products.