Improved Growth Outlook and Better-Than-Expected Results Boosted Tandem Diabetes Care (TNDM) 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 Tandem Diabetes Care, Inc. (NASDAQ:TNDM) as one of its leading contributors. Headquartered in San Diego, California, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) offers technology solutions for people living with diabetes. Tandem Diabetes Care, Inc. (NASDAQ:TNDM) shares traded between $9.98 and $37.93 over the past 52 weeks. On January 26, 2026, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) stock closed at $20.20 per share. One-month return of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was -10.26%, and its shares gained 33.77% of their value over the last three months. Tandem Diabetes Care, Inc. (NASDAQ:TNDM) has a market capitalization of $1.37 billion.

Meridian Growth Fund stated the following regarding Tandem Diabetes Care, Inc. (NASDAQ:TNDM) in its fourth quarter 2025 investor letter:

“Tandem Diabetes Care, Inc. (NASDAQ:TNDM) develops advanced insulin delivery technologies for patients with diabetes. Its automated insulin delivery systems are well-positioned to gain share in a sizable and expanding addressable market, where a majority of Type 1 diabetes patients still manage insulin manually.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held Tandem Diabetes Care, Inc. (NASDAQ:TNDM) at the end of the third quarter, compared to 34 in the previous quarter. While we acknowledge the potential of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) 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 Tandem Diabetes Care, Inc. (NASDAQ:TNDM) and shared the list of stocks Jim Cramer discussed. 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.