Multiple Factors Lifted Equinix (EQIX) in Q1

Soumya Eswaran Mon, June 29, 2026 at 9:14 AM EDT 3 min read **

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Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for "Meridian Hedged Equity Fund". A copy of the letter can be downloaded here. The Fund invests in high-quality growth companies and mitigates risk by writing call options. Following the late-February strike on Iran, oil prices surged, leading to a risk-off sentiment, boosting energy sector performance. Large-cap technology stocks declined as investors rotated towards smaller companies and more defensive value investments. Market conditions are becoming challenging due to reduced expectations for a Federal Reserve rate cut and increasing geopolitical uncertainty. The Fund returned 0.08% (net) for the quarter, outperforming the S&P 500 Index, which fell 4.33%, and the CBOE S&P 500 BuyWrite Index, which declined 0.92%. At the end of the period, 43% of the portfolio was unhedged, while the remainder was invested in companies with covered call options. 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 Hedged Equity Fund highlighted Equinix, Inc. (NASDAQ:EQIX) as a leading contributor. Equinix, Inc. (NASDAQ:EQIX) is a leading digital infrastructure company that operates a global network of data centers and interconnected ecosystems, enabling seamless delivery of digital experiences and cutting-edge AI quickly and efficiently. On June 26, 2026, Equinix, Inc. (NASDAQ:EQIX) closed at $1,091.30 per share, reflecting a market capitalization of $107.63 billion. Equinix, Inc. (NASDAQ:EQIX) posted a one-month return of 3.86%, and its shares gained 37.19% over the past 52 weeks.

Meridian Hedged Equity Fund stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its Q1 2026 investor letter:

"Equinix, Inc.** (NASDAQ:EQIX) is a leading global provider of digital infrastructure, offering premium co-location and interconnection services across a global footprint of 280 data centers in 77 markets. Our investment thesis centers on its unmatched interconnection moat—more than 500,000 connections that create a powerful network effect for enterprise, cloud and network customers. The company is well positioned to capitalize on secular demand for artificial intelligence, hybrid multi-cloud architectures and vendor neutral digital infrastructure. The stock outperformed during the period after the company reported record bookings, accelerating recurring revenue growth, and AI-related workloads approaching 60% of recent large-scale deals. While the long-term growth outlook remains compelling, the elevated capital expenditures required to meet surging demand warrant continued monitoring. We maintained our position throughout the quarter."

** Story Continues Equinix's Rising Cash Flow Positions It as a Next Generation Dividend Aristocrat Equinix, Inc. (NASDAQ:EQIX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge fund portfolios held Equinix, Inc. (NASDAQ:EQIX) at the end of the first quarter, up from 51 in the previous quarter. While we acknowledge the potential of Equinix, Inc. (NASDAQ:EQIX) 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 also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock**.

In another article, we covered Equinix, Inc. (NASDAQ:EQIX) and shared Baron Real Estate Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.