Meridian Small Cap Growth Fund, managed by ArrowMark Partners, released its Q2 2025 investor letter, reporting a 6.96% return compared to the Russell 2000 Growth Index’s 11.97% return. The fund highlighted Axogen, Inc. (NASDAQ:AXGN), a healthcare company focused on peripheral nerve regeneration, with a stock price of $15.36.

In the investor letter, Meridian Small Cap Growth Fund praised Axogen, Inc. for its leadership in nerve regeneration technologies and reported top-line growth of 17%. Despite a Q1 gross margin shortfall, the fund remains optimistic about Axogen’s long-term potential, adding to its position during the quarter.

Axogen, Inc. (NASDAQ:AXGN) saw an 18.3% year-over-year increase in sales, reaching $56.7 million in Q2 2025. While 27 hedge funds held Axogen, Inc. in their portfolios, some believe AI stocks offer greater potential. For those seeking undervalued AI stocks, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Axogen (AXGN) Slid on a Weaker Than Expected Gross Margin