Meridian Growth Fund cites Curtiss-Wright as strategic defence holding amid market volatility
The Meridian Growth Fund returned -7.90% in the first quarter, trailing the Russell 2500 Growth Index, while highlighting the US industrial manufacturer’s exposure to nuclear propulsion and long-cycle defence programs.
Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for the Meridian Growth Fund, outlining a challenging start to the year for US equities. The fund reported a return of -7.90%, underperforming the Russell 2500 Growth Index benchmark, which fell 3.52% over the same period. The letter attributed the underperformance primarily to industry allocation effects, although stock selection acted as a positive contributor to the portfolio’s performance.
The US equity market opened 2026 with elevated volatility, driven by uncertainty surrounding trade policy and escalating geopolitical risks. Initial optimism regarding domestic corporate confidence and Federal Reserve easing measures waned as tariffs increased and military strikes occurred against Iran. Despite the broader market turbulence, the fund noted that value outperformed across the entire market capitalisation spectrum.
In its analysis, the fund highlighted Curtiss-Wright Corporation (NYSE:CW) as a strategic position benefiting from long-cycle defence programs, nuclear propulsion content, and commercial nuclear power applications. The letter stated that the company’s exposure to critical national security programs and growing energy infrastructure demand positioned it favourably during a period of heightened geopolitical tension.
Curtiss-Wright reported first-quarter 2026 sales of $914 million, representing a 13% year-over-year increase. The company’s shares closed at $731.24 on 22 May 2026, with a market capitalisation of $27.01 billion. Over the preceding 52 weeks, the stock gained 70.67%, while recording a one-month return of 1.96% leading up to the late May close.
According to data from the source’s database, 59 hedge fund portfolios held Curtiss-Wright at the end of the fourth quarter, a decrease from 62 in the previous quarter. The source noted that the industrial manufacturer is not among its list of 40 most popular stocks among hedge funds heading into 2026, with the firm suggesting that certain AI stocks may offer greater upside potential with less downside risk.
