Core Viewpoint - The Meridian Small Cap Growth Fund's fourth-quarter 2025 performance reflects a mixed market environment, with small caps achieving a 12.8% annual return despite a 0.90% net return for the fund in Q4 compared to the Russell 2000 Growth Index's 1.22% return [1]. Group 1: Market Overview - U.S. equity markets experienced optimism due to potential monetary easing and caution regarding economic growth and valuations [1]. - Early gains in the quarter were driven by strong AI-related earnings and a rate cut by the US Federal Reserve in October [1]. - Market sentiment cooled later in the quarter, but the overall annual results remained robust [1]. Group 2: Fund Performance - The Meridian Small Cap Growth Fund achieved a 0.90% net return in Q4 2025 [1]. - Small caps delivered a 2.2% gain in Q4 2025, contributing to an annual return of 12.8% [1]. Group 3: Company Focus - Consensus Cloud Solutions, Inc. - Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is highlighted as a leading information delivery services provider with a one-month return of 29.94% and a 10.70% increase over the last 52 weeks [2]. - The stock closed at $28.34 per share on February 18, 2026, with a market capitalization of $538.624 million [2]. - The company has a high percentage of recurring revenues, low churn in the enterprise segment, and high margins, but underperformed in Q4 due to a mixed earnings report [3]. - Currently trading at less than four times earnings with a free cash flow yield of approximately 22%, the company is viewed as attractively valued [3]. - Consensus Cloud Solutions, Inc. recorded revenue of $87.1 million in Q4 2025, a slight increase of 0.1% from Q4 2024 [5].

Core Insights - The Meridian Small Cap Growth Fund reported a 4.20% net return in Q3 2025, underperforming the Russell 2000 Growth Index which returned 12.19% [1] - U.S. small caps outperformed large caps in Q3 2025, with small caps gaining 12.4% compared to large caps' 5.3% [1] - Value stocks slightly outperformed growth stocks among small caps, returning 12.6% and 12.2% respectively [1] Company Analysis: Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) - Consensus Cloud Solutions, Inc. is a leading provider of secure data delivery for enterprise healthcare and cloud fax solutions, with a market capitalization of $427.25 million [2][3] - The stock experienced a one-month return of -24.36% and a 52-week loss of 9.83%, closing at $22.48 per share on December 02, 2025 [2] - The company reported Q3 2025 revenue of $87.8 million, consistent with Q3 2024, and maintained strong margins in the mid-50% range [4] - Consensus Cloud Solutions has a high percentage of recurring revenues and low churn in the enterprise segment, which supports its growth potential [3] - The stock is trading at around five times earnings with a ~20% free cash flow yield, indicating limited downside potential [3] Hedge Fund Interest - Consensus Cloud Solutions was held by 14 hedge fund portfolios at the end of Q3 2025, a decrease from 15 in the previous quarter [4] - Despite its potential, certain AI stocks are viewed as offering greater upside potential and less downside risk compared to Consensus Cloud Solutions [4]