The late Richard F. Aster Jr.'s Meridian Fund Inc. has
reported a total of 67 transactions in the three months that
represent the third quarter, 15 of them reductions to current
shareholdings and 25 of them complete sells of entire
shareholdings with companies.
The consumer goods and services sectors accounted for the
majority of Meridian's reductions and sells, with the technology
sector in second place.
Meridian's third quarter portfolio updates also included 19 new
buys and shareholding additions with 8 companies.
With an equity value of $2.79 billion, Meridian Fund Inc. owns
147 mid- to large-cap stocks in its portfolio, and is parent to
three funds: Meridian Equity Income Fund, Meridian Growth Fund
and Meridian Value Fund.
Industrials, technology, consumer services, financials and
consumer goods make up the top five sectors represented in
the fund's portfolio
Meridian listed its primary investment beliefs on its website
which included focusing on earnings growth as the determinant of
stock prices, as well as valuation and investing in stocks
long-term, which will "outperform bonds and other liquid
Prior to Richard Aster Jr.'s death in February, Aster, who led
portfolio management in Meridian's investment advising company,
Aster Investment Management Co. Inc., also led all the funds
under Meridian Fund Inc. Currently, the following people have
assumed management responsibilities of the three funds: Larry
Cordisco, James England, James O'Connor and William Tao,
according to a prospectus filed with the SEC Nov. 1.
The following companies are some of Meridian's third quarter
sells that experienced high changes from their average price for
the quarter: Royal Caribbean Cruises Ltd. (
), Carmax Inc. (
) and Blackbaud, Inc. (
To view all of Meridian's 67 transactions in the third quarter,
GuruFocus Stock Picks
Royal Caribbean Cruises Ltd. (
Out of all of Meridian's third quarter portfolio updates, Royal
Caribbean Cruises (
) experienced the highest change from its average price for the
quarter, at 29 percent.
Its price per share has ranged from $23.61 to as high as $31.26.
It is currently selling at $35.02.
reduced its shareholding with the company by 51.84 percent in the
third quarter, and now has a current shareholding of 925,050
As a global cruise vacation company that operates 40 cruise ships
under five different cruise lines, Royal Caribbean has a market
cap of $7.32 billion, and has a
rank of 3 out 5 stars by GuruFocus.
Under four Severe Warning signs, its data also reveals a
declining gross margin, a declining operating margin and a
history of long-term debt.
Besides Meridian Fund, the following Gurus have sold out all
their shares of Royal Caribbean as of the second quarter: Steven
Cohen, Louis Moore Bacon and Jim Simons.
CarMax Inc. (
Online car buying company, CarMax Inc. (
) experienced a 20 percent change from its average price in the
third quarter. Meridian reduced 46.46 percent of its shares with
the company, only its third reduction in its CarMax holding
history, which started in the first quarter of 2009.
Currently trading at $35.40 per share (close to its 10-year
high), almost 3 percent up for today, CarMax has a market cap of
$7.67 billion; it also has a P/E ratio (ttm) of 19.06, a P/B
ratio of 2.7 and a P/S ratio of 0.8.
KMX data by GuruFocus.com
Meridian currently holds 986,395 shares of CarMax after the
reduction, which only impacted his portfolio negatively by 0.74
Blackbaud Inc. (
Meridian Inc. reduced its shares of Blackbaud Inc. (
) by 82.92 percent, after it changed from its average price by 15
percent in the third quarter.
Serving the nonprofit and education sectors, Blackbaud Inc.
provides cloud-based and on-premise software solutions to meet
the needs of its 27,000 customers in more than 60 countries. Its
services include aiding in initiatives that deal with
fundraising, eMarketing, social media, advocacy, and financial
management, to name a few.
Blackbaud stock is up almost 2 percent today, trading at $22.40.
It has a market cap of 1.07 billion, a P/E (ttm)ratio of 58, a
P/B ratio of 6.9 and a P/S ratio of 2.9.
Despite its four Severe Warning signs that indicate a bankruptcy
possibility and declining efficiency, Blackbaud also appears with
five Good Signs, with high dividend yields, a price close to a
three-year low as well as P/E and P/B ratios appearing low.
Meridian currently holds 242,400 shares of Blackbaud after its
reduction. Meridian has reduced the company in the last three
View the rest of Meridian Fund's portfolio details here. Also
view its high yield stocks, top growth companies and undervalued
stocks.About GuruFocus: GuruFocus.com tracks the stocks picks and
portfolio holdings of the world's best investors. This value
investing site offers stock screeners and valuation tools. And
publishes daily articles tracking the latest moves of the world's
best investors. GuruFocus also provides promising stock ideas in
3 monthly newsletters sent to