Meridian Hedged Equity Fund Details
MRAEX | MRCEX | MRIEX | MEIFX
January 31st, 2005
S&P 500 Index
Investment Approach
The Meridian Hedged Equity Fund seeks to optimize long-term growth of capital while minimizing portfolio volatility through fundamental research and active portfolio construction characterized by a combination of long and opportunistic risk-managed equity exposures. Security selection focuses on quality growth companies with durable competitive advantages, attractive end markets, proven management teams, and a positive asymmetry of returns. The risk-managed exposure seeks to monetize the mispricing of market volatility to create a margin of safety on the downside with covered call option structures.
This approach to optimizing total return while limiting portfolio volatility has been successfully employed throughout the Firm’s history and is shaped by our thorough analysis of intrinsic value, understanding of volatility dynamics, and structuring experience.
Vehicle Options
-
Meridian Hedged Equity Fund – Investor, A, C Share Classes
-
Separately Managed Accounts
Total Returns %
(As of 09/30/2024)| 1 Month | 3 Months | 12 Months | 3 Years | 5 Years | 10 Years | Since Inception | |
|---|---|---|---|---|---|---|---|
| Class A | 2.68% | 6.11% | 22.78% | 4.78% | 11.24% | 12.44% | 9.39% |
| Class C | 2.58% | 5.86% | 21.88% | 4.21% | 10.69% | 11.93% | 9.20% |
| Investor | 2.66% | 6.21% | 23.13% | 5.06% | 11.57% | 12.74% | 9.67% |
| Legacy | 2.72% | 6.19% | 23.12% | 5.12% | 11.60% | 12.82% | 10.04% |
| S&P 500 | 2.14% | 5.89% | 36.35% | 11.91% | 15.98% | 13.38% | 10.55% |
Calendar Year Returns %
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|
| Class A | 10.74% | 27.41% | -1.01% | 44.56% | 25.74% | 14.61% | -16.85% | 18.63% |
| Class C | 10.29% | 26.83% | -1.46% | 44.00% | 25.30% | 14.05% | -17.21% | 18.11% |
| Investor | 11.08% | 27.71% | -0.96% | 45.24% | 25.90% | 15.11% | -16.62% | 18.94% |
| Legacy | 11.15% | 27.94% | -0.65% | 44.97% | 26.22% | 14.92% | -16.50% | 18.96% |
| S&P 500 | 11.96% | 21.83% | -4.38% | 31.49% | 18.40% | 28.71% | -18.11% | 26.29% |
Hypothetical Growth of $10,000 Investment Chart, Legacy Shares (MEIFX)
*Fund inception date is 1/31/05. Since inception index returns are calculated using the Fund’s Legacy class inception date of 1/31/05.
Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted.
A Class: Prior to 7/1/15, the A Class was named Advisor Class. The historical performance shown for periods prior to inception on 11/15/13 was calculated using historical Legacy class performance as adjusted for estimated class-specific expenses for distribution, shareholder servicing and sub-transfer agency fees without consideration to any expense limitation or waivers. The annual gross expense ratio is 1.65% as of 6/30/23. The annual net expense ratio is 1.51% after a recoupment of 0.14% as of 6/30/23. If the class had been offered prior to 11/15/13, the actual performance and expenses may have differed from the amounts shown. Performance shown for class A shares with load includes the Fund’s maximum sales charge of 5.75%. C Class: The historical performance shown for periods prior to inception on 7/1/15 was calculated using historical Legacy class performance as adjusted for estimated class-specific expenses, for distribution, shareholder servicing and sub-transfer agency fees, without consideration to any expense limitation or waivers. The annual gross expense ratio is 2.28% as of 6/30/23. The annual net expense ratio is 2.26% after a recoupment of 0.02% as of 6/30/23. If the class had been offered prior to 7/1/15, the actual performance and expenses may have differed from the amounts shown. Investor Class: The historical performance shown for periods prior to inception on 11/15/13 was calculated using historical Legacy class performance as adjusted for estimated class-specific expenses for shareholder servicing and sub-transfer agency fees without consideration to any expense limitation or waivers. The annual gross expense ratio is 1.34% as of 6/30/23. The annual net expense ratio is 1.26% after a recoupment of 0.08% as of 6/30/23. If the class had been offered prior to 11/15/13, the actual performance and expenses may have differed from the amounts shown. Legacy Class: Legacy class shares of the Fund are no longer available for purchase by new investors, except under certain limited circumstances which are described in the Statement of Additional Information. The annual gross expense ratio is 1.34% as of 6/30/23. The annual net expense ratio is 1.26% after a recoupment of 0.08% as of 6/30/23.
Performance prior to 9/5/13 reflects the Fund’s performance under the management of Aster Investment Management Co. using similar investment strategies.
Fund Characteristics
(As of 09/30/2024)| # of Fund Holdings: | 67 |
| Fund AUM: | $47mm |
| Price/earnings: | 21.7 |
| Price/free cash flow: | 14.1 |
| Weighted-Average Market Cap: | $469,959mm |
Market Cap Distribution %
(As of 09/30/2024)| Less than $2 billion: | 5.59% |
| $2 billion - $5 billion: | 15.17% |
| $5 billion - $10 billion: | 12.26% |
| Greater than $10 billion: | 110.06% |
| Not Classified: | -43.08% |
Sector Exposure %
(As of 09/30/2024)Glossary:
Number of Holdings: The total number of individual equities held by the Fund.
Weighted Average Market Capitalization: The weighted average of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in the portfolio, weighted according to its percent held in the fund.
Price to Earnings Ratio: A valuation ratio of current share price compared to its per-share operating earnings over the previous four quarters.
Price to Cash Flow: A measure of the market’s expectations of a firm’s future financial health. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed.
Market Capitalization and Sector Exposure values include cash. Portfolio characteristics and sectors are subject to change. Past performance does not guarantee future results. Please refer to the glossary for specific details on each data point.
Top 10 Holdings %
(As of 09/30/2024)| MGM RESORTS INTERNATIONAL (MGM): | 3.54% |
| CLEAR SECURE, INC. (YOU): | 3.25% |
| D.R. HORTON, INC. (DHI): | 3.20% |
| QUALCOMM INCORPORATED (QCOM): | 3.12% |
| AMAZON.COM, INC. (AMZN): | 2.98% |
| MICROSOFT CORPORATION (MSFT): | 2.66% |
| AIRBNB, INC. (ABNB): | 2.34% |
| VISA INC. (V): | 2.30% |
| INTERCONTINENTAL EXCHANGE, INC. (ICE): | 2.29% |
| ALIBABA GROUP HOLDING LIMITED (BABA): | 2.21% |
Portfolio Manager
Clayton Freeman
Clay Freeman is a Principal and Portfolio Manager for ArrowMark’s hedged equity and multi-asset strategies.
Holdings are subject to change.
Risk Considerations
There are risks involved with any investment. The principal risks associated with an investment in this Fund are set forth below. Please see the section “Further Information About Principal Risks” in this Prospectus for a detailed discussion of these risks and other factors you should carefully consider before deciding to invest in the Fund.
General Risk: You could lose money on your investment in the Fund or the Fund could underperform other investments.
Investment Style Risk: Although the Fund makes every effort to achieve its investment objective of long-term growth of capital, it cannot guarantee that the Investment Adviser’s investment strategies or securities selection method will achieve that objective
Market Risk: The value of the Fund’s investments will fluctuate in response to the activities of individual companies and general stock market and economic conditions and the value of your investment in the Fund may be more or less than your purchase price.
Growth Investing Risk: There is a risk that the Fund’s emphasis on investing in growth-oriented companies may underperform during times when growth investing is out of favor.
Small Company Risk: Generally, the smaller the capitalization of a company, the greater the risk associated with an investment in the company. The stock prices of smaller and newer companies tend to fluctuate more than those of larger, more established companies and have smaller market for their shares than do large capitalization companies.
Equity Securities Risk: Equity securities holders are entitled to the income and increase in the value of the assets and business of an issuer after debt obligations and obligations to debt securities holders are satisfied. Equity securities fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investors perceptions and market liquidity.
Foreign Company Risk: Investments in foreign securities may be subject to more risks than those associated with U.S. investments, including currency fluctuations, political and economic instability and differences in accounting, auditing and financial reporting standards. Emerging market securities involve greater risk and more volatility than those of companies in more developed markets. Significant levels of foreign taxes are also a risk related to foreign investments.
High Yield Bond Risk: Debt securities that are rated below investment grade (commonly referred to as “junk bonds”) involve a greater risk of default or price declines than investment grade securities. The market for high-yield, lower-rated securities may be thinner and less active, causing market price volatility and limited liquidity in the secondary market. This may limit the ability of a Fund to sell these securities at their fair market values either to meet redemption requests, or in response to changes in the economy or the financial markets.
Debt Securities Risk: Debt securities are subject to credit risk, interest rate risk and liquidity risk. Credit risk is the risk that the entity that issued a debt security may become unable to make payments of principal and interest when due and includes the risk of default. Interest rate risk is the risk of losses due to changes in interest rates.
Liquidity risk: The risk that the Fund may not be able to sell portfolio securities, including medium- and lower-grade securities, because there are too few buyers for them.
Investing in the market is subject to risk and possible loss of principal amount invested.
Investors should consider the investment objective and policies, risk considerations, charges, and ongoing expenses of an investment carefully before investing. The prospectus contains this and other information relevant to an investment in the fund. Please read the prospectus or summary prospectus carefully before you invest or send money. To obtain a prospectus, please contact your investment representative or access the Fund Literature for the Prospectus.
ALPS Distributors, Inc., a member FINRA, is the distributor of the Meridian Funds, advised by ArrowMark Colorado Holdings, LLC. ALPS, Meridian and ArrowMark are unaffiliated.
The information on this website is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer. All rights reserved.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value