Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for "Meridian Contrarian Fund". The Fund aims to invest in undervalued companies with clear catalysts for sustainable improvement. A copy of the letter can be downloaded here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Early-period gains were attributed to confidence in domestic companies and to the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Contrarian Fund returned 1.10% compared to the Russell 2500 Growth Index's 2.04% return and its secondary benchmark, the Russell 2500 Value Index's 4.77% return. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Meridian Contrarian Fund highlighted California Resources Corporation (NYSE:CRC) as a leading contributor. California Resources Corporation (NYSE:CRC) is a US-based independent energy and carbon management company. On June 26, 2026, California Resources Corporation (NYSE:CRC) closed at $53.72 per share, reflecting a market capitalization of $4.77 billion. California Resources Corporation (NYSE:CRC) posted a one-month return of -4.76%, while its shares gained 17.87% over the past 52 weeks.
Meridian Contrarian Fund stated the following regarding California Resources Corporation (NYSE:CRC) in its Q1 2026 investor letter:
"California Resources Corporation (NYSE:CRC) is an oil and gas producer in the state of California with a growing carbon management business harvesting CO2 from industrial locations and storing it in spent oil caverns. We initially invested in California Resources shortly after an emergence from bankruptcy as the company's varied ***** ets – oil and gas production, ocean front land south of Los Angeles, and carbon management – were misunderstood and growth drivers for the company. The stock outperformed in the first quarter as the company unveiled its unique ability to provide carbon neutral energy, land, and water for AI data centers in California, and continues to grow its oil production. Higher oil prices at quarter end also pushed the stock higher. We remain investors after slightly trimming our position on strength as part of our disciplined risk management process."
California Resources Corporation (NYSE:CRC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held California Resources Corporation (NYSE:CRC) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the potential of California Resources Corporation (NYSE:CRC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that