Meridian Funds

Meridian Funds

Last Update: 08-31-2013

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' Undervalued Stocks With Growing Earnings

    Meridian Funds is a long-term small-cap investment firm with several mutual fund strategies. The firm was founded by the late Richard Aster Jr. 

    The following are the most undervalued stocks in Meridian's portfolio that have growing EPS over the last five years.


  • Undervalued Stocks With Low P/E Among Meridian Funds' Holdings

    Richard Aster is the founder of Aster Investment Management Company and he manages both Meridian Value Fund and Meridian Growth Fund. According to GuruFocus the hedge funds have a total value of $2,681 million and the following are the top 5 of the 149 stocks of the portfolio that are trading with a wide margin of safety according to the DCF calculator and with a a low P/E ratio.

    Baxter International Inc.


  • Meridian Funds' 2015 Annual Report To Investors

  • Meridian Funds Comments on Costco

    Costco (NASDAQ:COST) operates a differentiated business model, which is membership-based warehouse clubs. The paid membership base exceeds 42 million paying households and (at $55 per year) generates $2.4 billion in annual membership fees. This revenue is visible, recurring in nature, and over time, offers significant operating leverage as Costco gradually implements fee increases. Customers sign up because they receive significant value from Costco's ability to leverage its purchasing power to offer high quality brands at discounted value. Costco has always protected its brand and reputation, and, in many ways, was the original big box to think about the strategic benefits of customer relationships as opposed to driving traffic and transaction counts. Although the stock has recently lagged the broader S&P, Costco remains a core holding of the fund.


  • Meridian Funds Comments on Amazon

    Amazon (NASDAQ:AMZN) is the category killer in an industry that it invented: customer-centricity. Over the past 20 years, Amazon has made massive investments in technology to offer a personalized commerce experience. Amazon has also relentlessly invested in its vast distribution and fulfillment infrastructure to introduce a game-changing customer relationship, the Amazon Prime subscription membership with free two-day delivery. And the company continues to push the envelope with a variety of same day delivery options, ever shrinking the time gap from the order to physical delivery.


  • Meridian Funds Comments on Denny's

    Denny’s (NASDAQ:DENN) is an iconic casual dining chain with approximately 1,500 franchises and 160 company-owned restaurants. The company came across our contrarian screens repeatedly during years of decline under a series of previous management teams. We invested in 2011 when strong new management took over with a coherent turnaround plan. Denny’s made solid progress, stabilizing the business with menu and marketing improvements and using solid free-cash flow to pay down debt, repurchase shares and fund a successful restaurant remodel program, though sales growth remained subdued. An inflection point came in 2014 as sales improved significantly, aided by lower gas prices that alleviated pressure on Denny’s core customer. This is a trend that accelerated through the remainder of the year and has held up in 2015. We remain shareholders though we reduced our position significantly due to the rise in the stock.


  • Meridian Funds Comments on ServiceMaster Global Holdings

    ServiceMaster Global Holdings (NYSE:SERV) is a leading provider of termite and pest control services, home warranties and other residential services. The company had problems with marketing and service missteps at its lawn care division, which is no longer part of the company. We invested in ServiceMaster because of its dominant positions in fragmented markets, including 40% market share in home warranties, and consistent sales growth, driven by 80% customer retention and share gains from smaller competitors. The stock outperformed over the past year, as earnings results showed continued revenue growth and much better than expected profit margins driven by cost-saving initiatives, lower fuel costs and product mix. We remain ServiceMaster shareholders as its business continues to improve and the sectors in which it operates remain attractive. We maintain a significant position in ServiceMaster though we have reduced our position, as the valuation multiple has increased significantly since our initial investment.


  • Meridian Funds Comments on Neurocrine Biosciences

    Neurocrine Biosciences (NASDAQ:NBIX) is a pharmaceutical company with two development-stage programs focused on neurological and endocrine-based health problems. The company came to our attention after poor clinical trial results for one of its programs resulted in a 40% reduction in the share price. We invested because the issues with the trial were related to trial design, not drug efficacy. Management presented a credible plan for addressing the design issues, and the company’s valuation was capturing only a fraction of the potential cash flows that could be generated by both drug programs. Over the past year, both of Neurocrine’s drug programs have delivered strong clinical trial results and are on track for commercialization, which may drive significant earnings and cash flow growth. We have reduced our position somewhat over the past year due to the strong appreciation in share price but continue to hold shares in Neurocrine Biosciences.

    From Meridian Growth Fund’s annual letter.


  • Meridian Funds Comments on RigNet

    RigNet (NASDAQ:RNET) provides communication- and network-based services to the oil and gas industry, specifically offshore drilling rigs. The market’s concern with the decline in offshore drilling activity negatively impacted share price performance. The outlook this year for the oil and gas industry remains difficult to predict; however, we have conviction that RigNet can still grow at a positive rate based on the recurring revenue from service contracts. We added to the position during the period.


  • Meridian Funds Comments on CHC Group

    CHC Group (NYSE:HELI) is a helicopter service company that specializes in transportation to offshore oil and gas platforms. The company underperformed over the past year due to continued low oil prices and declining activity in the offshore segment of the market. We believe the company is still well-positioned for the long term, but its exposure to large exploration and production companies will likely continue to be a drag on performance in the short term. We maintained our position.


  • Meridian Funds Comments on Stratasys

    Stratasys (NASDAQ:SSYS) is a 3-D printing company that specializes in rapid prototyping and additive manufacturing solutions. The company continues to invest in channel development, which has put near-term pressure on margins and earnings. Given the nascent industry, we believe these investments will generate attractive long-term returns. Our investment thesis is supported by continued market share gains, a solid balance sheet and robust consumable revenue growth. We added to the position during the period.

    From Meridian Growth Fund’s annual letter.


  • Meridian Funds Comments on SS&C Technologies

    SS&C Technologies (NASDAQ:SSNC) is a technology provider to the financial services industry. The company returned 42% over the one-year period. SS&C has continued to create shareholder value through its acquisition strategy – with two acquisitions being announced in the last 12 months. The most recent acquisition, Advent Software, is the largest in the company’s history. We continue to like the stability of the company’s revenues, especially now that approximately 92% of total revenues are recurring in nature. We reduced the position size, as the earnings-per-share multiple has expanded and the share price has approached our estimate of fair value.


  • Meridian Funds Comments on Carter's

    Carter’s is a leading manufacturer and retailer of infant and toddler apparel. The company continues to benefit from stable demand and solid execution, which has led to double-digit earnings growth. Key drivers of performance for Carter’s include continued store growth, e-commerce initiatives, improved OshKosh fundamentals and international expansion. We reduced the position as the company returned 56% over the period.

    From Meridian Growth Fund’s annual letter.


  • Meridian Funds Comments on Cimpress

    Cimpress (NASDAQ:CMPR) provides marketing products and services through the Internet to small and micro businesses. The company returned 108% over the one-year period due to organic revenue growth, which has accelerated for each of the last four quarters, and to the expansion of net margins. These factors, in addition to attractive acquisitions, have resulted in adjusted earnings-per-share doubling over the past two years even in the face of headwinds from currency exposures. We reduced our position during the period as the risk-reward profile for the company has become less favorable.

    From Meridian Growth Fund’s annual letter


  • Meridian Equity Income Fund Annual Report 2015

    Fellow Meridian Equity Income Fund Investor:


  • Meridian Contrarian Fund Annual Report 2015

    During the one-year period ending June 30, 2015, the Meridian Contrarian Fund Legacy Class shares returned 6.84%, which compares to a return of 5.92% for its primary benchmark, the Russell 2500 Index.


  • Meridian Growth Fund Annual Report 2015

    Our primary objective is to create an “all-weather” small-cap growth portfolio that has the potential to outperform in a variety of market conditions. The 2014 market environment experienced several different weather patterns which resulted in notably higher volatility. Given our focus on downside protection, we welcome more volatile market environments. To this end, we were able to capitalize on increased volatility to outpace the benchmark by 4.65% during the second half of 2014. Volatility has been more muted for the first half of 2015 which has created a headwind to relative portfolio performance.


  • Mariko Gordon's Highest-Performing Stocks

    Mariko Gordon (Trades, Portfolio), CFA, is the founder of Daruma Capital Management. She started the firm in 1995 with zero assets. The firm is 100% employee-owned and manages $2.3 billion for public and corporate pension plans, endowments, foundations and individuals.

    Her portfolio is composed of 48 stocks and has a total value of $2,237 million with 5% Q/Q turnover; the following are the stocks of her portfolio with the highest return since her last trade on Q1 2015


  • Pennsylvania Trust Co.'s Top Sales in Q2 2015

    Pennsylvania Trust Co. recently filed its quarterly 13F where it reports the current holdings in its portfolio.

    The fund closed the second quarter of 2015 with a value of its portfolio of $1.69 billion (+9.30% from the previous quarter) and it bought 49 new stocks. In my previous article, I listed the top 5 buys, and here I want to list the top stakes the fund sold out and most weighted reductions of its stakes.


  • Is This Dip a Buying Opportunity for Pall Corporation?

    On Feb. 20, Pall Corporation (NYSE:PLL) shares hit a new high. But just four days later, the company lowered its guidance, and the share price began falling.

    It wasn’t that the company expected its earnings to fall, but rather it expected the rate of growth to slow. It estimated its earnings for fiscal 2015 (ending on July 31) would grow by only 6% to 12%. Nevertheless, as the following chart of the share price shows, that led to a loss of confidence that continues:


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