Core Viewpoint - The Meridian Contrarian Fund reported a strong performance in Q2 2025, with a return of 16.42%, outperforming the Russell 2500 Index and the Russell 2500 Value Index, amidst a significant recovery in the U.S. equity market, which rose 23% during the quarter [1] Group 1: Fund Performance - The U.S. large-cap stocks gained 11.1% in Q2 2025, with growth stocks outperforming value stocks [1] - The Meridian Contrarian Fund's return of 16.42% (net) exceeded the Russell 2500 Index's return of 8.59% and the Russell 2500 Value Index's return of 7.29% [1] Group 2: QuidelOrtho Corporation (NASDAQ:QDEL) - QuidelOrtho Corporation is a diagnostic testing solutions provider, with a one-month return of -7.51% and a 52-week loss of 41.75%, closing at $26.53 per share on September 25, 2025, with a market capitalization of $1.802 billion [2] - The Meridian Contrarian Fund invested in QuidelOrtho following its merger with Ortho Clinical Diagnostics, believing it positioned the company for improved growth and margins [3] - Despite the company's earnings being in line with expectations, broader macro concerns affected its stock performance, particularly in the respiratory business and potential funding cuts in government health programs [3] Group 3: Hedge Fund Interest - QuidelOrtho Corporation was held by 31 hedge fund portfolios at the end of Q2 2025, a decrease from 32 in the previous quarter [4] - The company reported Q2 revenue of $614 million, down from $637 million in the prior year [4]

Core Viewpoint - QuidelOrtho Corporation (NASDAQ:QDEL) is recognized as one of the best small-cap stocks to buy, with RBC Capital raising its price target from $60 to $62 while maintaining a Buy rating [1][3]. Financial Performance and Strategy - QuidelOrtho has successfully completed a series of transactions to refinance its debt structure, extending debt maturities and reducing required amortization payments, which enhances financial flexibility [2][3]. - The company prioritizes reducing total debt and net debt leverage, improving debt covenant terms, and enhancing cash flow to support future growth [3]. Market Growth and Opportunities - The company has experienced significant growth in international markets during Q2 FY2025, particularly in Latin America, Japan, Asia Pacific, and EMEA regions [4]. - QuidelOrtho is focusing on its molecular strategy, including the acquisition of LEX Diagnostics, which is expected to enhance its growth potential [4]. Analyst Insights - As of September 5, the average price target for QuidelOrtho is $37.50, indicating an upside potential of approximately 30.75% from current levels [5]. - QuidelOrtho operates in various segments, including Labs, Transfusion Medicine, Point of Care, and Molecular Diagnostics [5].