National Research Corp. (NRCIB) experienced strong gains during the two-week period ending December 31, 2013. The company provides performance measurement services to the healthcare industry to help providers and payers measure outcomes. We believe that National Research is well positioned for the evolving healthcare landscape and has a strong business model characterized by recurring revenues, high margins, and returns on equity in excess of 20%. Additionally, the A shares owned by the Fund closed the year at a 45.8% discount to the B shares; we expect this valuation discrepancy to narrow over time.
From Meridian Funds's semi-annual report ended December 31, 2013.
