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Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for "Meridian Contrarian Fund". The Fund aims to invest in undervalued companies with clear catalysts for sustainable improvement. A copy of the letter can be downloaded here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Early-period gains were attributed to confidence in domestic companies and to the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Contrarian Fund returned 1.10% compared to the Russell 2500 Growth Index's 2.04% return and its secondary benchmark, the Russell 2500 Value Index's 4.77% return. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Meridian Contrarian Fund highlighted Adeia Inc. (NASDAQ:ADEA) as a leading contributor. Adeia Inc. (NASDAQ:ADEA) operates as an intellectual property licensing company focused on media and semiconductor technologies. On June 26, 2026, Adeia Inc. (NASDAQ:ADEA) closed at $30.82 per share, reflecting a market capitalization of $3.48 billion. Adeia Inc. (NASDAQ:ADEA) posted a one-month return of 6.96%, while its shares gained 116.41% over the past 52 weeks.

Meridian Contrarian Fund stated the following regarding Adeia Inc. (NASDAQ:ADEA) in its Q1 2026 investor letter:

"Adeia Inc. (NASDAQ:ADEA) is an intellectual property licensing company focused on media, entertainment, and semiconductor technologies. We initially invested in 2023 after it was a spin out from a larger company and saw promise that its intellectual property was needed by semiconductor companies to enable the high-intensity computing required for AI. Shares rallied after the company announced several key licensing renewals and new agreements with large streaming and pay TV providers, and signed a key license with AMD, confirming Adeia's key design technologies. While we trimmed the position modestly into strength, we continue to see an attractive risk/reward profile given Adeia's high margin, recurring revenue model, and the potential for additional upside from incremental licensing wins."

Adeia Inc. (NASDAQ:ADEA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 26 hedge fund portfolios held Adeia Inc. (NASDAQ:ADEA) at the end of the first quarter, up from 20 in the previous quarter. While we acknowledge the potential of Adeia Inc. (NASDAQ:ADEA) 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 Adeia Inc. (NASDAQ:ADEA) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.