This month, we screen for attractive “bond replacement” investment candidates using new holdings of the Meridian Contrarian Fund (MFCIX), managed by James England and Larry Cordisco.
We have selected the stocks that this fund reported purchasing in the first quarter of 2016 (the latest period for which data was available) and have limited the list based on two criteria:
- Stocks listed represented more than 2% of the portfolio’s value
- Stocks listed had been bought by the fund in the reported quarter
These conditions were to screen for the stocks in which these managers had demonstrated the most confidence (by portfolio weight) and about which they had made an active decision to invest. As we explain in our video introduction to “Bond Replacement” investments, we are using these portfolio managers’ actions as an indication of undervaluation.