Meridian Small Cap Growth Fund


  • Long-term growth of capital by investing primarily in equity securities of small capitalization companies 

A mutual fund that seeks:

  • To prioritize downside risk before potential return
  • Maintain long-term investment horizon

Fundamental Research

Meridian Small Cap Growth Fund's portfolio managers conduct in-depth, fundamental research to uncover companies that, in their opinion, can control their own economic destiny. The team starts by identifying business with a strong competitive advantage and high barriers to entry.  They then narrow the search to companies with large potential markets and with what the managers believe are high-quality businesses focused on the future. Lastly, the possible stock price scenarios are analyzed with a focus on the potential downside risk.

Ticker Symbols

A Shares: MSGAX
C Shares: MSGCX
Investor Shares: MISGX
Institutional Shares: MSGRX
Legacy Shares: MSGGX

Competitive Advantage

  • High barrier to entry
  • Product differentiation
  • Pricing power

Addressable Market

  • Increasingly large market opportunity
  • Low existing penetration
  • Secular tailwinds
  • Longer period of rapid growth

High-Quality Business

  • Scalable model
  • Predictable and recurring revenue stream
  • Improving margins and return on invested capital

Attractive Risk/Reward

  • Determine range of possible outcomes rather than target price
  • Focus on downside risk

Principal Investment Strategy

The Fund seeks long-term growth of capital by investing, under normal circumstances, at least 80% of its net assets, including the amount of any borrowings for investment purposes, in equity securities (including, but not limited to, common stocks, preferred stocks and securities convertible into common and preferred stocks) of U.S. small capitalization companies. In the view of the Investment Adviser, small capitalization companies are defined as companies whose total market capitalization falls within the range of companies included in the Russell 2000® Growth Index or the S&P SmallCap 600® Index at the time of purchase. Both indices are broad indices of small capitalization stocks. As of September 30, 2013, the market capitalization of the companies in these indices ranged from approximately $50 million to $4.8 billion. The Fund may also invest up to 20% of its net assets in securities of companies of any market capitalization.

The portfolio managers apply a “bottom up” fundamental research process in selecting investments. In other words, the portfolio managers analyze individual companies to determine if a company presents an attractive investment opportunity and if it is consistent with the Fund’s investment strategies and policies.

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.