Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Large cap growth stocks saw a 7.1% gain in the quarter, contributing to 33.4% annual gains. The strong performance was driven by optimism for Trump's re-election, anticipated tax cuts, and a business-friendly regulatory environment. In the fourth quarter, the fund returned -0.81% (net) underperforming the benchmark, the Russell 2500 Growth Index’s 2.43% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Meridian Growth Fund emphasized stocks such as Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud-based digital platform for medical professionals. The one-month return of Doximity, Inc. (NYSE:DOCS) was 32.60%, and its shares gained 165.11% of their value over the last 52 weeks. On February 20, 2025, Doximity, Inc. (NYSE:DOCS) stock closed at $75.00 per share with a market capitalization of $14.073 million.

Meridian Growth Fund stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q4 2024 investor letter:

"Doximity, Inc. (NYSE:DOCS) operates a digital platform tailored for medical providers, functioning similarly to LinkedIn for healthcare professionals. Its cloud-based tools facilitate patient care, telemedicine, medical news, research, and career management. With approximately 80% of U.S. doctors using Doximity, the platform presents a compelling opportunity for advertising, especially from pharmaceutical companies. The company demonstrated strong fundamentals during the quarter, delivering double-digit organic growth and margin expansion, which supported the stock’s positive performance. As the stock price appreciated, we trimmed the position in alignment with our valuation discipline."

A pathologist and a laboratory assistant in a laboratory researching medical news and data.

Doximity, Inc. (NYSE:DOCS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the fourth quarter compared to 19 in the third quarter. Doximity, Inc. (NYSE:DOCS) reported 25% year-on-year revenue increase in third quarter fiscal 2025, surpassing the high end of the guidance range by 10%. While we acknowledge the potential of Doximity, Inc. (NYSE:DOCS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article we discussed Doximity, Inc. (NYSE:DOCS) and shared the list of best performing healthcare stocks so far in 2025. Doximity, Inc. (NYSE:DOCS) contributed to Meridian Growth Fund's performance in the previous quarter due to robust revenue growth and margin expansion. In addition, please check out our hedge fund investor letters Q4 2024 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.