Axogen (AXGN) Benefited from Multiple Tailwinds

Core Viewpoint - The Meridian Small Cap Growth Fund's fourth-quarter 2025 performance reflects a mixed market sentiment influenced by optimism regarding monetary easing and caution about economic growth, with small caps achieving a 12.8% annual return despite a modest 0.90% return in Q4 compared to the Russell 2000 Growth Index's 1.22% [1] Group 1: Fund Performance - The U.S. equity markets experienced early gains due to strong AI-related earnings and a rate cut by the US Federal Reserve in October, but sentiment cooled later in the quarter [1] - The Meridian Small Cap Growth Fund achieved a 0.90% net return in Q4 2025, while small caps overall delivered a 2.2% gain for the quarter [1] Group 2: Axogen, Inc. Overview - Axogen, Inc. (NASDAQ:AXGN) is recognized as a leader in technologies for peripheral nerve regeneration and repair, with a market capitalization of $1.768 billion [2] - The stock of Axogen, Inc. closed at $35.25 per share on February 18, 2026, with a one-month return of 10.16% and a twelve-month increase of 90.54% [2] Group 3: Axogen, Inc. Developments - Axogen, Inc. reported a 20% revenue growth and gross margins of nearly 77%, surpassing investor expectations, and received favorable reimbursement terms for its flagship product [3] - The FDA approved a key therapy's BLA submission for Axogen, granting 12 years of market exclusivity, which is expected to enhance the company's commercial coverage and growth potential [3] Group 4: Hedge Fund Interest - Axogen, Inc. was held by 20 hedge fund portfolios at the end of Q3 2025, a slight decrease from 21 in the previous quarter, indicating a moderate level of interest among hedge funds [4] - Despite recognizing Axogen's potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]