Robust Results and Share Repurchase Authorization Boosted ACV Auctions (ACVA)

Meridian Funds, managed by ArrowMark Partners, reported a strong second quarter 2026 with its Meridian Hedged Equity Fund gaining 4.50%, trailing the S&P 500's 15.20% return. The firm's focus on high-quality companies, managed through covered call options, provided a balanced approach to growth and risk. ACV Auctions Inc. (NYSE:ACVA), a digital automotive marketplace, was highlighted in the fund's investor letter.

Despite a 10.19% decline over the past month, ACV's shares are down 43.27% year-to-date, trading between $4.07 and $11.91 over the past 52 weeks. The company's digitally native platform connects U.S. dealer-to-dealer used vehicle transactions, leveraging technology, inspections, and an AI-powered solution called VIPER to improve efficiency.

ACV's Q1 financial results and a $100 million share repurchase authorization, including $50 million in accelerated repurchases, contributed to its improved performance. The fund noted that while ACV showed strong growth, there are other AI stocks with better short-term potential and lower risk.