Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third-quarter 2025 investor letter. Equities hit a record high in the third quarter, fueled by technology gains and falling bond yields. The fund returned 6.72% (net) during the quarter, underperforming the Russell 2500 Index and Russell 2500 Value Index.

The Honest Company, Inc. (NASDAQ:HNST) was highlighted in the Meridian Contrarian Fund’s third-quarter 2025 investor letter. The company manufactures diapers, wipes, skincare, and household products. The stock had a one-month return of -19.94% and lost 67.71% of its value over the last 52 weeks.

In its investor letter, Meridian Contrarian Fund discussed its investment in The Honest Company, Inc. (NASDAQ:HNST). Despite quarterly results exceeding expectations, the stock declined due to cautious guidance. The fund sees value in the company’s brand authenticity and expects growth in consumer distribution well into 2026.

The Honest Company, Inc. (NASDAQ:HNST) is not among the 30 Most Popular Stocks Among Hedge Funds. The company reported revenue of $93 million, down 7% year-over-year. While acknowledging its investment potential, the fund believes certain AI stocks offer greater upside potential with less downside risk. Check out their free report on the best short-term AI stock.

Read more at Yahoo Finance: The Honest Company (HNST) Fell Due to Cautious Guidance