Market Overview - U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution related to economic growth and valuations [1] - Early gains were driven by strong AI-related earnings and a rate cut by the US Federal Reserve in October, but sentiment cooled later due to mixed signals from the Fed [1] - Large caps rose 17.4% for the year and 2.4% in the quarter, while small caps gained 12.8% for the year and 2.2% in the quarter [1] - Value stocks outperformed growth stocks, returning 3.3% versus 1.2% for the quarter [1] Fund Performance - Meridian Growth Fund delivered a return of -0.39% (net) in the quarter, underperforming the Russell 2500 Growth Index's return of 0.33% [1] - The firm is monitoring factors affecting market returns, including changes in monetary policy and the sustainability of AI investments due to high valuations among hyperscalers [1] - The focus remains on high-quality businesses with strong competitive advantages, solid balance sheets, and clear sustainable earnings growth [1] Company Spotlight: Certara, Inc. - Certara, Inc. (NASDAQ:CERT) was highlighted as a leading relative detractor for the Meridian Growth Fund [2] - Certara offers software products and technology-enabled services for bio-simulation, with shares trading between $8.03 and $15.69 over the past 52 weeks, closing at $10.11 on January 26, 2026 [2] - The company experienced a one-month return of 14.11% but lost 16.65% of its value over the last three months, with a market capitalization of $1.61 billion [2] Certara's Business Dynamics - Certara develops software and services that support drug development through biosimulation, with a majority of recent FDA-approved drugs utilizing its solutions [3] - The company underperformed in the quarter due to weaker-than-expected service bookings, leading to a slight reduction in guidance [3] - With a new CEO adopting a more commercially focused strategy and potential divestiture of a non-core business segment, Certara is positioned to transform into a more focused growth company [3]