Polypore International, Inc. (PPO) was the Fund’s largest detractor during the period. The company reported a weak third quarter with revenues and EPS missing consensus estimates. Additionally, the company announced that it was in the process of renegotiating contracts with its largest customers and that the outcome of these negotiations was difficult to predict. We continue to own the stock because we believe that Polypore has proprietary technology that allows it to manufacture the highest quality battery separators at the lowest cost. As electric and hybrid vehicles continue to increase their penetration of the auto market, we believe that Polypore should be poised to grow at high incremental margins and at high returns on invested capital.
From Meridian Funds's semi-annual report ended December 31, 2013.
