Should You Be Confident in Kirby Corporation (KEX)?
Meridian Funds, managed by ArrowMark Partners, released its third-quarter 2025 investor letter for the “Meridian Small Cap Growth Fund.” A copy of the letter can be downloaded here. Driven by continued gains in technology and falling bond yields, equities reached record highs in the quarter. U.S. small caps outperformed in the quarter, gaining 12.4%, while large caps returned 5.3%. Among small caps, value stocks slightly surpassed growth stocks, returning 12.6% and 12.2%, respectively, according to Russell indices. In this environment, the fund returned 4.20% (net) in the third quarter compared to the Russell 2000 Growth Index’s 12.19% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as Kirby Corporation (NYSE:KEX). Kirby Corporation (NYSE:KEX) is a US-based domestic tank barge operator. The one-month return of Kirby Corporation (NYSE:KEX) was 6.77%, and its shares lost 6.26% of their value over the last 52 weeks. On December 02, 2025, Kirby Corporation (NYSE:KEX) stock closed at $113.44 per share, with a market capitalization of $6.33 billion.
Meridian Small Cap Growth Fund stated the following regarding Kirby Corporation (NYSE:KEX) in its third quarter 2025 investor letter:
"Kirby Corporation (NYSE:KEX) is the largest inland marine transportation provider in the U.S., moving bulk liquid products such as petrochemicals, black oil, refined products, and agricultural chemicals. The company also supports engines, transmissions, and related equipment through its distribution and aftermarket service business. We were initially attracted to Kirby for its long track record of profitability, consistent free cash flow, and a transportation network more than twice the size of its nearest competitor. Results were pressured during the period as barge utilization softened due to the regional refining mix, impacting pricing—a key driver of long-term earnings. Despite near-term challenges and lower Street earnings revisions, we remain confident in Kirby’s favorable supply-demand dynamics and growth potential, and we added to our position during the period."
Kirby Corporation (NYSE:KEX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Kirby Corporation (NYSE:KEX) at the end of the third quarter, which was 40 in the previous quarter. While we acknowledge the potential of Kirby Corporation (NYSE:KEX) 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.
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