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The Mutual Fund Winners And Losers For The Second Quarter Of 2019
Anyone here invested in Meridian Enhanced Equity Fund? It’s the number one fund listed by Baron’s in the large cap category. I invested when the fund was first opened under Meridian’s prior management. Back then it was a very tiny equity income fund. The new management put a former Janus manager in charge and lately its become very volatile (3% daily moves are not uncommon) that shorts the market and buys gold, in addition to holding dividend stocks. The volatility almost scared me into selling last fall. But the impressive gains have convinced me to let this manager do his thing. Unfortunately, the Meridian shareholder reports provide only a skimpy discussion of the new investment philosophy.
I agree with you, @Lawlar, that it's hard to get good information about this fund. The portfolio is rightly labeled by Lipper as multi-cap growth, not LC, but I could not tell what stocks it shorts or even evidence of gold holdings. Under the current manager, it seems you can count on volatility. I note that the fund made a much larger than usual distribution in 2018; that could simply be a reflection of that year's market drop forcing the manager to sell a lot. Maybe you takes your money and you runs; DFDPX, one of the funds mentioned in the Barron's article on little-known funds, has achieved similar long-term results with less volatility.
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