Meridian Hedged Equity Fund’s latest investor letter revealed insights into the market’s trajectory and their strategic asset allocations for the closing quarter of 2025. The U.S. stock market experienced a dynamic quarter, driven by initial optimism surrounding potential monetary easing and strong AI-related earnings. However, this momentum later tempered due to economic growth concerns and valuation adjustments. Despite the fluctuating sentiment, the quarter's performance contributed positively to the year's overall robust results. As 2026 approaches, the firm remains vigilant, focusing on monetary policy shifts and the sustainability of AI investments amid elevated valuations, while continuing its rigorous, bottom-up fundamental analysis and careful risk management practices.
A notable aspect of the Meridian Hedged Equity Fund's success in the fourth quarter of 2025 was the strong performance of Clear Secure, Inc. (NYSE:YOU). This company, widely known for its CLEAR brand, offers advanced biometric identification and access solutions that significantly improve efficiency and security at various locations, including airport checkpoints. The fund identifies Clear Secure as a groundbreaking force in identity verification, adept at meeting the growing need for both enhanced security protocols and user convenience. With its stock closing at $32.50 per share on February 13, 2026, Clear Secure, Inc. has demonstrated substantial growth, including a 44.19% increase over the preceding twelve months, and boasts a market capitalization of $4.382 billion, underscoring its pivotal role in the portfolio.
However, despite its promising profile, Clear Secure, Inc. is not among the top-tier selections of hedge funds, as indicated by various market analyses. While its potential is recognized, other AI-focused equities are believed to offer more significant upside with reduced risk. This perspective encourages a broader search for investment opportunities, especially in areas benefiting from strategic economic trends such as re-shoring and specific trade policies. Such diversified approaches highlight a commitment to discovering opportunities that align with evolving market dynamics and future growth trajectories.
In a rapidly changing world, innovation and security are paramount. Clear Secure’s advancements in biometric identity solutions exemplify how technology can enhance daily lives, offering both convenience and peace of mind. Investing in such forward-thinking companies supports not only financial growth but also the development of a more secure and efficient society, demonstrating that strategic investments can indeed drive positive societal impact.