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 Comments on National CineMedia

    National CineMedia, Inc. (NASDAQ:NCMI) displays advertisements to U.S. consumers in movie theaters, online, and through mobile devices. Among the many things we like about this company is its healthy dividend yield, strong EBITDA (earnings before interest, taxes, depreciation, and amortization) margins, low capital intensity, and long-duration contracts with leading theater groups. Although the company reported stronger-than-expected quarterly revenue and EBITDA for its fourth quarter, guidance for 2017 was below expectations. Additionally, AMC Entertainment, one of National CineMedia’s largest shareholders, announced plans to divest the majority of its stake in the company in order to comply with the Department of Justice’s Final Order on AMC’s acquisition of Carmike Cinemas. We believe business fundamentals remain intact and therefore continue to hold a position in the stock.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Funds Comments on INC Research Holdings

    INC Research Holdings, Inc. (NASDAQ:INCR) is a global contract research organization (CRO) that operates primarily in the clinical development market. With a broader market that is 50% outsourced today, we are encouraged by INC’s single-digit market share and competitive global network. The stock declined following Q4 bookings that came in lighter than expected as two larger awards within their pipeline did not materialize. Although near-term bookings were impacted, we believe the company’s long-term prospects remain intact. Of particular strategic value is INC’s global network, which enables its comprehensive suite of consultative and operational services to be that much more effective. Thus, we maintained our position.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Funds Comments on Sally Beauty Holdings

    Sally Beauty Holdings, Inc. (NYSE:SBH) is a specialty distributor and retailer of beauty products to salons and consumers worldwide. We own the company because of its history of consistent earnings growth and promising international opportunities. Management cut forward guidance during the quarter as lighter retail traffic to the company’s strip mall locations led to negative same-store sales growth in its Sally Beauty Supply segment. Its Beauty Systems Group segment, which distributes directly to beauty salons and is more structurally insulated from broader retail weakness, made up for that decline as the company posted positive same-store sales growth overall. Efforts to broaden its reach through a revised loyalty program and enhanced social media activities should help combat some of the structural headwinds. We continue to hold our position.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Funds Comments on Cadence Design Systems

    Cadence Design Systems, Inc. (NASDAQ:CDNS) provides “mission critical” electronic design automation (EDA) software to the semiconductor industry. Our investment in the company is based on its predictable and recurring revenue base as well as its ability to consistently raise prices, a rarity in the semiconductor space. The company reported a strong quarter highlighted by market share gains in both its digital and emulation segments. Cadence also finalized a $1.2 billion stock buyback program and announced a second program in the amount of $525 million. Though the news was positively received, we trimmed our position as the company’s share price appreciated towards our target price. We still remain invested due to Cadence’s shareholder-friendly practices and attractive risk-reward profile.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Funds Comments on Exact Sciences Corp

    Exact Sciences Corp. (NASDAQ:EXAS) develops noninvasive molecular screening tests for the early detection and prevention of colorectal cancer. We originally invested in the company because Cologuard, its revolutionary product, exhibited low market penetration and significant opportunity for continued adoption. Test accuracy versus other non-invasive tests has led to improved adoption rates and recent annual revenue growth in excess of 150%. Large commercial insurer, Aetna, recently announced its decision to cover the screening for qualified members. In this positive environment, Exact Sciences raised its test volume expectations to 415,000 for the year and noted meaningful gross margin improvement as its business model continues to scale faster than expected. As such, we are maintaining our position.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Funds Comments on CEB Inc.

    CEB, Inc. (NYSE:CEB) is a business services company that provides best-practice and technology insights to businesses in a wide range of industries. We were first attracted to CEB for its recurring revenue business model and its low market penetration. IT research firm, Gartner, Inc., also found value in CEB’s platform and acquired the company during the first quarter in a cash and stock deal worth roughly $2.6 billion. By combining CEB’s existing client partnerships with Gartner’s operational expertise and distinct sales network, we believe the acquisition should be accretive.


    From Meridian Growth Funds first-quarter 2017 shareholder commentary.

      


  • Meridian Growth Fund 1Q 2017 Commentary

    MARKET SUMMARY

      


  • Meridian Growth Fund 4th Quarter Commentary

    MARKET SUMMARY

      


  • Scott Black Exits Avnet, Deckers in 3rd Quarter

    Scott Black is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. During the third quarter the guru’s largest trades were:


    He purchased 29,492 shares in Icon PLC ADR (ICLR) with an impact of 1.42% on the portfolio.

      


  • Robert Olstein Invests in Waste Management, Outdoor Sports, Lab Products

    Olstein Capital Management’s Robert Olstein (Trades, Portfolio) bought eight new holdings in the third quarter. His top three new holdings are Stericycle Inc. (NASDAQ:SRCL), Vista Outdoor Inc. (NYSE:VSTO) and VWR Corp. (NASDAQ:VWR).


    Olstein founded his firm in 1995. It follows an accounting-driven, value-oriented philosophy that is based on the premise that the price of a common stock may not reflect the company’s true value. The investment team employs analytical and valuation methods to determine the quality of a company. It looks behind the numbers to assess the company’s financial strength and downside risk.

      


  • PRIMECAP Adds to Trimble, NN Inc.

    PRIMECAP Management (Trades, Portfolio) added to its positions in Trimble Inc. (NASDAQ:TRMB) and NN Inc. (NASDAQ:NNBR) on Sept. 30.


    PRIMECAP was founded in 1983 by Howard Schow, Mitchell Milias and Theo Kolokotrones in Pasadena, California. The firm manages multiple funds and evaluates securities based on their three- to five-year outlook.

      


  • AutoZone: Debt Is a Dragging Brake on This Muscle Car

    On Thursday, Sept. 22, AutoZone Inc. (NYSE:AZO), one of the big four auto parts retailers, will release its fourth quarter and fiscal 2016 earnings.


    With a 5-Star GuruFocus predictability rating and a history of exceptional growth, it is a company worth watching. Especially now that the share price has pulled well back from its 52-week high. But, buying that growth also means buying into a heavy load of long-term debt.

      


  • Meridian Funds Comments on Heritage-Crystal Clean

    Heritage-Crystal Clean, Inc. (NASDAQ:HCCI) has been a solid, long-term performer, but pulled back during the period in response to declining oil prices. One of the reasons we were originally attracted to this environmental services company is the recurring revenue stream generated by its parts cleaning business. However, Heritage-Crystal Clean also provides a used oil collection service and operates an oil re-refinery. The company is successfully lowering input costs in this business, recently transitioning from paying customers to collect and dispose of used oil to charging for this service. Heritage then re-processes the used oil it collects and sells it as new motor oil. We believe this segment of the business shows considerable promise, and have been adding to the position.

      


  • Meridian Funds Comments on Roadrunner Transportation Systems

    Roadrunner Transportation Systems, Inc. (NYSE:RRTS), a leading transportation and logistics service provider, declined along with other transportation service providers. Weak freight markets, a more competitive pricing environment, and an increase in accidents worked against Roadrunner, causing it to miss third-quarter earnings expectations. The company also took a one-time charge after discontinuing a lease-guarantee program designed to attract owner-operators. We believe Roadrunner’s position as the low-cost provider in this space will enable it to successfully weather the competitive pricing environment, which we expect will be short-lived. In addition, the company is gaining market share and enjoying double-digit returns on acquisitions. We opted to hold onto this stock while closely monitoring fundamentals.

      


  • Meridian Funds Comments on Pacific Biosciences of California Inc.

    Pacific Biosciences of California Inc. (NASDAQ:PACB) is a leader in the field of next-generation gene sequencing technology. In October, the company unveiled the Sequel™ System, a gene-sequencing platform that is smaller and less expensive than the Pacific Bioscience’s former gene sequencer. This groundbreaking technology enables longer and more accurate reads of genomes, and is the result of collaboration with Roche, a health care company with interests in human in vitro diagnostics. Late in the period, Pacific Biosciences received a $20 million milestone payment from Roche for completing the project. We believe this new platform will enable the company to penetrate a larger portion of the broader sequencing market.

      


  • Meridian Funds Comments on Solera Holdings Inc.

    Solera Holdings, Inc. (NYSE:SLH) is a company we’ve followed for several years but were unable to purchase due to the fact that it remained just above the portfolio’s market-capitalization range. However, in July the company’s market cap declined, making it a viable investment for the portfolio. As a provider of risk and asset management software and services to the global automotive industry, Solera is a stable business that is both predictable and defensive in nature. The majority of the company’s revenues are recurring, and it has a strong competitive position, particularly outside of the U.S. where it generates over half of its revenue. In August, Solera’s management announced the sale of the company to private equity firm Vista Equity Partners for $6.5 billion, causing the stock to appreciate. We viewed the increase in Solera’s share price as an opportunity to take profits and trimmed our position.

      


  • Meridian Funds Comments on SolarWinds Inc.

    SolarWinds, Inc. (NYSE:SWI) accepted a $4.5 billion offer to be acquired by two private equity firms, turning it into a homerun for investors. In October, the developer of IT infrastructure management software agreed to be purchased at nearly a 20% premium by Silver Lake Partners and Thoma Bravo. We initiated a position in SolarWinds in 2013 based on our belief that the company would benefit from an increasingly large market opportunity created by a pervasiveness of performance-driven IT infrastructures. We opportunistically added to the position when the stock pulled back and were rewarded by the takeout.

      


  • Meridian Funds Comments on Royal Gold Inc.

    Royal Gold, Inc. (NASDAQ:RGLD) is a precious metals company with royalty claims on gold, silver, copper, lead, and zinc at mines in over 20 countries. While gold performed better than other commodities during the period, the precious metal declined as U.S. monetary policy tightened and the dollar appreciated. Another setback for the company was the deferral of gold from a mine in Chile operated by Barrick Gold, which temporarily stopped construction at the mine. However, we believe Royal Gold has an exceptional business model and we view our investment in the company as a great way to get exposure to gold. The company essentially pays miners upfront for the right to buy their metals later at reduced prices. It has no operational risk because it owns no mines, is a beneficiary of ounces growth, has pricing power, and typically earns an 8% return on a flat price. We have decided to be patient with Royal Gold and maintained a position in the stock.

      


  • Meridian Funds Comments on Exact Sciences Corp

    Exact Sciences Corp. (NASDAQ:EXAC) declined after an independent panel of health care experts excluded the company’s colon cancer-screening test from a list of recommended tests in the U.S. Instead, the panel defined the product as “alternative testing that may be useful in select clinical circumstances.” Marketed as Cologuard, the product is a non-invasive, FDA-approved colorectal cancer-screening test covered by Medicare. It has proven effective at detecting early-stage colon cancer as well as precancerous lesions. When detected early, colon cancer is highly curable. However, Cologuard’s exclusion from the panel’s list of recommended tests may make it more difficult to win favorable reimbursement from private insurers. We consequently liquidated our position in Exact Sciences and used proceeds from the sale to invest in other, more attractive investment opportunities.

      


  • Meridian Funds Comments on California Resources Corp

    California Resources Corp. (NYSE:CRC) is focused solely on oil and natural gas exploration and drilling in California. Our investment in this stock was based on the expectation that U.S. production would soon taper off, resulting in higher domestic oil prices. However, production continued to increase for much longer than we anticipated, forcing management to make production cutbacks, slash capital spending plans, and reduce the number of wells it plans to operate. Another negative for the company was its elevated debt load, which tends to fuel greater volatility in the stock when oil prices fall. We continue to believe California Resources Group is positioned for a rebound when U.S. oil production slows and therefore maintained a position in the stock.


    From the Meridian Equity Income Fund fourth quarter commentary.

      


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