Meridian Hedged Equity Fund Q2 2026 Letter Examines Pressures Facing Intercontinental Exchange

Meridian Funds, managed by ArrowMark Partners, released its second‑quarter 2026 investor letter for the Meridian Hedged Equity Fund. U.S. equities staged a robust recovery in the quarter, bouncing back from an earlier selloff driven by geopolitical tensions, primarily with Iran. The de‑escalation of those tensions led to a sharp decline in crude oil prices, although inflation remained a pressing issue, with consumer prices rising 4.2% year‑over‑year in May. The Federal Reserve kept interest rates unchanged but signaled a potential tightening bias under its new Chair, Kevin Warsh. The Meridian Hedged Equity Fund returned 4.50% over the period, underperforming the S&P 500’s 15.20% gain. The fund emphasizes high‑quality companies, blending growth prospects with risk mitigation through covered‑call strategies. Looking ahead, the manager expects market volatility but views it as an opportunity to apply disciplined research and invest in businesses with solid long‑term fundamentals.

In its second‑quarter 2026 investor letter, the Meridian Hedged Equity Fund highlighted Intercontinental Exchange, Inc. (NYSE:ICE), a U.S. financial‑services firm that delivers technology, data, and market infrastructure to financial institutions, corporations, and government agencies. On September 3, 2026, ICE shares closed at $164.59. Over the past month the stock gained 7.53%, while it fell 7.26% over the past 52 weeks. The company has a market capitalization of $92.4 billion, with its shares trading between a 52‑week low of $121.79 and a high of $177.00.

Meridian Hedged Equity Fund offered the following commentary on Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2026 investor letter:

“Intercontinental Exchange, Inc. (NYSE:ICE) is a leading global provider of financial‑market technology and data, operating a diversified portfolio that includes regulated exchanges, clearing houses, and comprehensive mortgage‑technology solutions. The company facilitates trading, clearing, and data distribution across a range of asset classes—including energy, financial products, fixed‑income instruments, and U.S. residential mortgages. The firm faced notable headwinds from investor concerns over the “on‑shoring” of perpetual futures following regulatory approvals for competitors, raising fears of potential institutional capital outflows from traditional exchanges. In addition, performance was pressured by a sequential decline in trading revenues and difficult year‑over‑year comparisons against the elevated activity observed during the Liberation Day and Iran‑War periods.

Intercontinental Exchange, Inc. (NYSE:ICE) was not included among the 40 most‑popular stocks held by hedge funds in our database. At the end of the second quarter, 89 hedge‑fund portfolios reported positions in ICE, up from 86 in the prior quarter.

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