Meridian Funds

Meridian Funds

Last Update: 2013-08-31

Number of Stocks: 149
Number of New Stocks: 15

Total Value: $2,681 Mil
Q/Q Turnover: 13%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Meridian Funds Watch

  • Meridian Funds Comments on Wolverine World Wide

    Wolverine World Wide (WWW) manufactures and markets branded footwear globally. The stock declined during the quarter as investors wait for a turnaround in one of their key brands, Sperry. We continue to be attracted to the company’s strong portfolio of brands, the long- term international growth opportunity and the strong management team. We trimmed the stock during the quarter; however, we still maintain a large position in the stock.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Second Quarter 2014 Commentary.  


  • Meridian Funds Comments on The Advisory Board Co

    The Advisory Board Company (ABCO) provides best practice research and analysis to the health care industry. The stock declined during the quarter when the company announced earnings that included higher than expected expense growth. We believe these investments are good uses of capital that will enhance the business model and long-term growth profile of the company. We continue to see a strong need for the company’s services and held our position during the quarter.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Second Quarter 2014 Commentary.  


  • Meridian Funds Comments on Clean Harbors

    Clean Harbors (CLH) provides a variety of environmental remediation and industrial waste management services. After being a laggard in the first quarter, during which time we also added to the position, the stock reacted strongly to both stabilizing business trends and the announcement that an activist investor was involved in the security. We remain attracted to the company’s large barriers to entry and pricing power in their core businesses and the recovery that we believe is on track in some of the company’s more cyclical businesses. We took advantage of the strength in the quarter to trim some of the position.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Second Quarter 2014 Commentary.  


  • Meridian Funds Comments on Prestige Brands

    Prestige Brands (PBH) is the largest independent provider of over-the-counter products in North America. Examples of their brands include Chloraseptic, Dramamine, PediaCare and Efferdent, to name a few. We added to the position during the first quarter when the stock was one of the largest detractors, selling off for short-term reasons. The company experienced a decline in items stocked at one of the company’s largest customers, but we believe this is a temporary situation and our long- term thesis remains unchanged. This proved timely as the company demonstrated stabilized results during the second quarter and announced an acquisition, which drove the stock higher. Prestige Brands has an asset-light business model that focuses exclusively on the marketing and distribution of these brands, which results in a growing, scalable and high-return business model. We continue to hold the position.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Second Quarter 2014 Commentary.  


  • Meridian Funds Comments on Polypore International Inc

    Polypore International (PPO) develops, manufactures and markets specialized membranes used in separation and filtration processes. The stock rallied strongly during the second quarter as it signed a new agreement with a customer that includes possible access to one of the world’s fastest growing electronic vehicle brands. We believe the company has substantial earnings growth potential driven by increases in capacity utilization of their lithium ion separator manufacturing facilities as electronic vehicles increase their share of total automobile production. We took advantage of the strong stock move to trim some of the position during the quarter.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Second Quarter 2014 Commentary.  


  • Meridian Growth Fund Second Quarter 2014 Commentary

    We are pleased with the Meridian Growth Fund’s (the “Fund”) outperformance during the quarter, which was driven by our discipline of using fundamental research to identify high-quality growth businesses with predictable and recurring revenues, high returns on capital and attractive risk-reward profiles. We then look to build a durable fund based on these ideas that seeks to manage downside risk in tough, turbulent markets and keeps up with the broader market in bull market environments.


    We believe the period from the market’s peak early in March is a good demonstration of this. From the market’s peak in early March, the fund captured just 71% of the market’s downside move, falling 6.5%* as compared to 9.2% for the Russell 2500 Growth to the April low. From that low point the fund was then able to capture 90% of the upside going into the end of the quarter, rising 8.0%* versus the index’s gain of 9.0%. We believe this focus on going down less in down markets can result in long-term outperformance due to the power of compounding. By maintaining discipline and a long-term focus, we welcome increased volatility in the market and believe these short-term gyrations can create opportunities to invest capital.

      


  • Meridian Funds Comments on Ubiquiti Networks

    Ubiquiti Networks (UBNT) designs and manufactures wireless broadband infrastructure equipment and other communications. Ubiquiti initially came to our attention in early 2013 after suffering declines in earnings. While being optimistic about overall market demand, our research led us to conclude that the problems facing the company were temporary and we invested in the stock. Management executed on the turnaround, which drove both revenue and earnings growth. As a result the stock has more than doubled from our initial purchase price.

    From Meridian Funds (Trades, Portfolio)’ Meridian Contrarian Fund Second Quarter Commentary.  


  • Meridian Funds Comments on EOG Resources

    Long-term holding EOG Resources (EOG) is a large, diversified oil and gas exploration and production company. The stock fell out of favor when the company made poorly timed investments to expand natural gas production just prior to a precipitous drop in natural gas prices. We saw this as an opportunity because the company possessed both the management acumen and attractive resource base to efficiently pivot production away from natural gas to oil. EOG continues to execute this strategy with better than expected oil production and higher oil prices driving strong stock performance during the fiscal year.We maintain our position in the stock.

    From Meridian Funds (Trades, Portfolio)’ Meridian Contrarian Fund Second Quarter Commentary.  


  • Meridian Funds Comments on CHC Group

    CHC Group (HELI) is a service provider to the offshore oil and gas industry. The stock declined during the period as the company’s growth trajectory did not exceed investor expectations. We added to the position during the period as we remain confident it will achieve our long-term growth and cash-flow targets. The overall industry continues to show strong growth, and the company’s own business is improving as it restructures contracts at higher prices with longer terms.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Funds Comments on Sally Beauty Holdings

    Sally Beauty Holdings (SBH) distributes and retails beauty products. During the period, the stock declined due to the impact of weather and some overall weakness in consumer spending. We have been adding to the position as we believe the company is well positioned to grow domestically, expand internationally and continue buying back stock, which should drive strong earnings growth for the long term.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Funds Comments on VistaPrint

    VistaPrint (VPRT) declined during the period due to a business model transition that has weighed negatively on short-term financial performance. We continue to believe that after the transition the company will have lower customer churn, higher customer duration, higher average selling prices and higher reorder rates. All of these combined should drive high operating leverage and substantial earnings growth. We have been adding to the position on weakness.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Funds Comments on Cadence Design Systems

    Cadence Design Systems (CDNS) provides software technology, design and consulting services and technology. Its primary product is electronic design automation software for the semiconductor industry. The stock rose as the company and industry transition began to show in its operating results. Specifically, industry consolidation has resulted in an improvement in pricing power. Cadence has successfully transitioned to a recurring revenue model, and we expect it to begin deploying its capital via stock repurchases. We trimmed the position modestly during the quarter.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Funds Comments on Sensata Technologies

    Sensata Technologies (ST) develops, manufactures and sells sensors and controls. We are attracted to the company’s large growth opportunity, which is driven by increased sensor penetration in industries such as automobiles and general industrial opportunities. We find Sensata’s business model to be attractive given the stability of its revenues, strong operating leverage and excellent management team. During the period, the company benefited from a rebound in European automobile sales and deployed capital in several small accretive acquisitions. We have been trimming the position modestly as the stock approaches our price target.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Funds Comments on Trimble Navigation

    Trimble Navigation (TRMB) provides location-based solutions to its customers that enhance their productivity and profitability. The recovery in construction end markets and continued strong demand from the farm economy resulted in strong overall financial results for the company and a strong stock price. We trimmed the position as it began to exceed the upper end of the market cap range that we invest in.

    From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.  


  • Meridian Contrarian Fund Second Quarter Commentary

    The Meridian Contrarian Fund-Legacy Shares returned 23.31% during the twelve-month period ending June 30, 2014, which compares to the primary benchmark, the Russell 2500 Index, which returned 25.58%. The strategy’s secondary benchmark, the S&P 500 Index, returned 24.61%.


    The Meridian Contrarian Fund’s investment strategy remains unchanged. We continue to seek out-of-favor companies that we believe, despite suffering temporary problems, have good long-term prospects for earnings growth supported by defensible positions in their industries, attractive return on capital and strong or improving balance sheets. Over the long term we believe this contrarian investing process can outperform the market.

      


  • Meridian Growth Fund Annual Annual Review

    On September 5, 2013, we began managing the Meridian Growth Fund. It is our distinct honor to take the helm of this venerable fund, which was founded by Richard Aster nearly 30 years ago. Through rigorous fundamental research, disciplined portfolio construction, and a focus on managing risk before reward, we hope to expand upon Meridian Growth Fund’s legacy. We will use the same process and philosophy that served us well managing another mutual fund for 7 years. Namely, our investment philosophy is centered on four key tenets:


    1. Employ fundamental research to identify high-quality growth businesses with predictable and recurring revenues, high returns on invested capital, and attractive risk-reward profiles.

      


  • Meridian Funds Annual Shareholder Letter

    Dear Shareholder,


    During the year ending June 30, 2014, the S&P 500 and the Russell 2500 (small and medium sized companies) returned over 24.6% and 25.5%, respectively. Continued accommodative Fed policy along with improvements in housing, employment and manufacturing were all supportive macro-economic factors that drove an overall increase in earnings and valuation for the indices.

      


  • Top Insider Buys Highlight: Core Laboratories NV

    Executive VP & CFO of Core Laboratories NV (CLB) Richard Bergmark bought 7,000 shares on July 28 at an average price of $147.31. The total transaction amount was $1,031,170.


    Core Laboratories is a Netherlands limited liability company established in 1936, engaged in providing proprietary and patented reservoir description, production enhancement and reservoir management services to the oil and gas industry. Core Laboratories has a market cap of $6.67 billion; its shares were traded at around $150.25 with a P/E ratio of 27.80 and P/S ratio of 6.30. The dividend yield of Core Laboratories stocks is 1.10%. Core Laboratories Nv had an annual average earnings growth of 22.50% over the past 10 years. GuruFocus rated Core Laboratories the business predictability rank of 3-star.

      


  • Meridian Funds Comments on Exact Sciences Corp

    Exact Sciences Corp. (EXAS) also had negative returns during the period, which created a drag on overall Fund performance. Exact Sciences is an early stage diagnostic company with a test for early detection of colorectal cancers. Upon receipt of the U.S. Food and Drug Administration’s approval, we believe that Exact Sciences’s Cologuard test will help revolutionize colorectal screening and increase overall compliance rates with clinical guidelines. We think that the large market, combined with attractive unit economics, should drive an improvement in shareholder value.


    From Meridian Funds's semi-annual report ended December 31, 2013.

      


  • Meridian Funds Comments on Exa Corp

    Exa Corp. (EXA) provides software for simulation driven product design. The stock experienced erosion in its price during the period, which made it the second largest detractor to performance. We view the company as being an open-ended growth opportunity as software based simulation benefits from prototyping in transportation markets. Simulation reduces the need for expensive prototypes, increases automation, and allows for faster turnaround times, which ultimately result in customer savings. Exa signs annual consumption-based licenses with customers, which we believe create predictable revenue streams with low volatility.


    From Meridian Funds's semi-annual report ended December 31, 2013.

      


Add Notes, Comments

If you want to ask a question, or report a bug, please create a support ticket.

User Comments

No comment yet



Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK