Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the market is more focused on the tailwind of policy easing than the headwind of weakening fundamentals, resulting in substantial gains despite stagflation emerging as a key concern. In this environment, the fund returned 1.67% (net) during the quarter, compared to 8.13% returns of the S&P 500 Index and 3.53% returns of the secondary benchmark, the CBOE S&P 500 BuyWrite Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted stocks such as Liberty Broadband Corporation (NASDAQ:LBRDK). Headquartered in Englewood, Colorado, Liberty Broadband Corporation (NASDAQ:LBRDK) is a communication services provider. One-month return of Liberty Broadband Corporation (NASDAQ:LBRDK) was 2.86%, and its shares lost 33.59% of their value over the last 52 weeks. On December 23, 2025, Liberty Broadband Corporation (NASDAQ:LBRDK) stock closed at $47.77 per share, with a market capitalization of $6.854 billion.
Meridian Hedged Equity Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDK) in its third quarter 2025 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDK) is a holding company with a 26% ownership stake in cable operator Charter Communications and full ownership of GCI, a broadband and wireless provider in Alaska. The investment case remains straightforward: Liberty Broadband’s shares trade at a meaningful discount to the value of its underlying assets— primarily its Charter stake—with a prospective merger between the two companies serving as the principal catalyst for value realization. The stock underperformed during the period, largely reflecting weaker sentiment across the cable sector following Charter’s softer second-quarter earnings update. Demonstrating the potential benefits of a future combination with Charter and a more streamlined corporate structure, Liberty completed the spin-off of its GCI subsidiary into a standalone entity in July. GCI’s shares traded roughly 20% higher following their listing, partially offsetting Liberty’s earlier weakness. Later in the period, Liberty’s shares recovered some ground after the announcement of a definitive merger agreement with Charter. With GCI now independent, Liberty Broadband’s management can focus exclusively on maximizing value from its Charter investment ahead of the merger, while GCI gains autonomy to pursue Alaska-focused growth initiatives.”
