<PAGE> 1
MERIDIAN VALUE FUND
July 31, 2000
To Our Shareholders:
The Meridian Value Fund's net asset value per share at June 30, 2000 was $25.88.
This represents an increase of 14.06% for the calendar year to date. The Fund's
total return and average annual compounded rate of return for the five years
ended June 30, 2000, were 249.4% and 28.4%, respectively. The comparable period
returns for the S&P 500 with dividends were 190.6% and 23.8%, respectively. We
are pleased to report that the Fund's five-year performance has resulted in a
five-star rating from Morningstar. The Fund's assets at the close of the quarter
were invested 17.5% in cash and cash equivalents and 82.5% in stocks. Total net
assets were $87,930,296 and there were 2,967 shareholders.
The Federal Reserve Board pursued a more restrictive monetary policy during the
second quarter and this made it difficult for equity investors. The S&P 500
declined 2.9 percent, the volatile and technology-laden NASDAQ 13.3 percent and
the Russell 2000 4.1 percent. For the first two quarters of the year the S&P 500
is down 1.0 percent, the NASDAQ has declined 2.5 percent, while the Russell
2000, a "small-cap" index, is 2.5 percent higher. Healthcare (including
biotech), energy and food stocks were among the best performing groups while
technology stocks were hardest hit. Internet stocks took a severe pounding as
investors finally began to demand tangible results. The Dow Jones Bond Index
showed little movement. The yield on the 30-year government bond declined from
5.94 percent to 5.88 percent during the period.
The economy continues to grow at a rapid rate, but there are signs that activity
is beginning to slow. Both housing starts and consumer spending growth have
moderated somewhat. Stock prices have leveled off and the unemployment rate has
temporarily halted its decline below 4%. The rate of increase in industrial
production has moderated also. We concur with the Federal Reserve's current
policy. Rather than rapid growth for a few quarters, it is best for the economy
to grow at a sustainable and non-inflationary rate over a long period of time.
Our outlook is for moderating growth over the balance of the year with the rate
of inflation and interest rates remaining near current levels. The growth in
corporate profits, in our opinion, will slow during the second half of the year.
Internet stocks lost a large chunk of their valuations in the June quarter,
including such bellwethers as Amazon.com and Healtheon/WebMD. The S&P 500's P/E
multiple also receded a bit from 30 times projected 2000 earnings due primarily
to increased earnings estimates. However, the valuations on the large technology
companies such as Cisco, Intel, and Oracle remain very high. The Meridian Value
Fund's strong performance in the first half of 2000 resulted from investments in
the technology, telecom/cable equipment, services, and energy sectors; partially
offset by weak performance of investments in the consumer products, healthcare
services, retail, and industrial products sectors.
<PAGE> 2
New positions established during the quarter include Dress Barn, Inc., ESC
Medical Systems, Federal Signal Corporation, Harris Corporation, McKesson HBOC,
PeopleSoft, Inc., SLM Holding, Telxon Corporation, VF Corporation, and Waste
Management, Inc. We sold our positions in Airgas, Inc., Arrow Electronics, AVX
Corporation, CNH Global N.V., Dura Pharmaceuticals, Inc., Omnicare, Inc.,
Pacific Century Financial Corporation, and REMEC, Inc.
PeopleSoft is a leading supplier of enterprise application software, and was one
of the fastest-growing enterprise software companies in the world during the
last half of the 1990s. Saturation of the client/server enterprise market,
coupled with a Y2K-related spending slowdown, caused the company's revenues and
earnings to decline in 1999. Consequently, the stock price dropped from a high
of $58 to $12. PeopleSoft has just released Version 8.0 of its enterprise
software, which is completely Internet-architected and integrates enterprise
resource management, customer relationship management, and supply chain
management functionality. Version 8.0, along with new e-business applications,
are expected to stimulate systems upgrades within organizations and enable
PeopleSoft to gain share in the fastest-growing segments of the enterprise
software sector. Revenue growth has already begun to accelerate. We believe that
PeopleSoft has an opportunity to sustain 30% annual license revenue growth for
the next few years, enabling operating margins to return to 18-20%, and EPS to
increase to more than $1.00. We purchased the shares at $14. The stock now
trades at $20, thirty times estimated 2001 earnings, but less than twenty times
potential 2002 earnings.
We welcome those new shareholders that joined the Meridian Value Fund during the
quarter and appreciate the continued confidence of our existing shareholders.
Sincerely,
/s/ Richard F. Aster, Jr.
Richard F. Aster, Jr.
/s/ Kevin O'Boyle
Kevin O'Boyle
2
<PAGE> 3
MERIDIAN VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- -----------
<S> <C> <C>
COMMON STOCK - 82.5%
AGRICULTURE - 1.1%
AGCO Corporation*..................................... 79,000 $ 967,750
APPAREL/SHOE - 4.8%
VF Corporation*....................................... 87,600 2,085,975
Wolverine World Wide, Inc.*........................... 215,000 2,123,125
BANKING AND FINANCE - 2.3%
SLM Holding Corp.*.................................... 55,000 2,059,062
CONSUMER PRODUCTS - 6.0%
Aftermarket Technology Corporation.................... 90,000 765,000
Callaway Golf Company*................................ 85,000 1,386,563
ESC Medical Systems................................... 135,000 2,210,625
Lancaster Colony Corporation*......................... 50,000 959,375
CONSUMER SERVICES - 2.6%
Waste Management Inc.*................................ 120,000 2,280,000
ENERGY - 6.9%
Burlington Resources, Inc.*........................... 54,500 2,084,625
Lakehead Pipeline Partners, L.P.*..................... 54,000 2,163,375
Tom Brown, Inc. ...................................... 80,000 1,845,000
HEALTH SERVICES - 8.0%
HEALTHSOUTH Corporation............................... 294,000 2,113,125
Haemonetics Corporation............................... 90,000 1,890,000
Lincare Holdings, Inc. ............................... 75,000 1,846,875
STAAR Surgical Company................................ 105,000 1,174,687
</TABLE>
The accompanying notes are an integral part of the financial statements
3
<PAGE> 4
MERIDIAN VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- -----------
COMMON STOCK (continued)
<S> <C> <C>
INDUSTRIAL PRODUCTS - 12.1%
Federal Signal Corporation*........................... 117,000 $ 1,930,500
Magnetek, Inc. ....................................... 125,000 1,000,000
Olin Corporation*..................................... 125,000 2,062,500
Pall Corporation*..................................... 111,500 2,062,750
Telxon Corporation.................................... 105,000 1,876,875
Thermo Electron Corporation........................... 80,000 1,685,000
INDUSTRIAL SERVICES - 6.9%
Avnet, Inc.*.......................................... 23,000 1,362,750
Convergys Corp. ...................................... 30,000 1,556,250
MSC Industrial Direct................................. 50,000 1,046,875
McKesson HBOC*........................................ 100,000 2,093,750
INSURANCE - 2.4%
Partner RE Ltd.*...................................... 59,300 2,101,444
REAL ESTATE - 2.4%
Healthcare Realty Trust*.............................. 122,000 2,081,625
RESTAURANTS - 2.3%
Buffets, Inc. ........................................ 160,000 2,030,000
RETAIL - 2.2%
Burlington Coat Factory Warehouse Corp.*.............. 60,000 648,750
Dress Barn, Inc. ..................................... 20,700 457,988
West Marine, Inc. .................................... 117,500 804,141
</TABLE>
The accompanying notes are an integral part of the financial statements
4
<PAGE> 5
MERIDIAN VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- -----------
COMMON STOCK (continued)
<S> <C> <C>
TECHNOLOGY - 14.4%
Avid Technology, Inc. ................................ 180,000 $ 2,160,000
FileNET Corporation................................... 110,000 2,021,250
Hyperion Solutions Corporation........................ 70,000 2,270,625
International Rectifier Corporation................... 45,000 2,520,000
PeopleSoft, Inc. ..................................... 150,000 2,512,500
SpeedFam-IPEC, Inc. .................................. 65,000 1,182,187
TELECOMMUNICATIONS/CABLE EQUIPMENT - 8.1%
ANTEC Corporation..................................... 20,000 831,250
Belden, Inc.*......................................... 75,000 1,921,875
Commscope, Inc. ...................................... 62,100 2,546,100
Harris Corporation*................................... 55,000 1,801,250
-----------
TOTAL COMMON STOCK
(Identified cost $66,456,813)..................................... 72,523,397
-----------
CASH AND OTHER ASSETS LESS LIABILITIES - 17.5%...................... 15,406,899
-----------
NET ASSETS - 100%................................................... $87,930,296
===========
</TABLE>
* income producing
The accompanying notes are an integral part of the financial statements
5
<PAGE> 6
MERIDIAN VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments (Cost $66,456,813)............................ $72,523,397
Cash and cash equivalents................................. 15,111,505
Receivables for:
Capital shares......................................... 1,062,513
Dividends.............................................. 64,875
Interest............................................... 63,818
Securities sold........................................ 119,996
Prepaid expenses.......................................... 204
-----------
TOTAL ASSETS........................................... 88,946,308
-----------
LIABILITIES
Payables for:
Capital shares......................................... 14,445
Securities sold........................................ 895,232
Accrued expenses.......................................... 106,335
-----------
TOTAL LIABILITIES...................................... 1,016,012
-----------
NET ASSETS.................................................. $87,930,296
===========
Capital shares issued and outstanding, par value $.01
(25,000,000 shares authorized)............................ 3,398,093
===========
Net asset value per share (offering and redemption price)... $25.88
===========
Net assets consist of:
Paid-in-capital........................................... $74,760,663
Accumulated net realized gain............................. 6,934,710
Net unrealized appreciation on investments................ 6,066,584
Undistributed net investment income....................... 168,339
-----------
$87,930,296
===========
</TABLE>
The accompanying notes are an integral part of the financial statements
6
<PAGE> 7
MERIDIAN VALUE FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends............................................... $431,067
Interest................................................ 351,489
---------
Total investment income............................ $782,556
EXPENSES
Investment advisory fees................................ 434,329
Professional fees....................................... 50,871
Pricing fees............................................ 41,350
Transfer agent fees..................................... 29,880
Registration and filing fees............................ 19,212
Custodian fees.......................................... 17,750
Reports to shareholders................................. 16,815
Directors' fees and expenses............................ 2,196
Miscellaneous expenses.................................. 1,814
---------
Total expenses..................................... 614,217
----------
Net investment income................................... 168,339
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments........................ 7,623,443
Net increase in unrealized appreciation on
investments.......................................... 1,519,356
---------
Net gain on investments................................. 9,142,799
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $9,311,138
==========
</TABLE>
The accompanying notes are an integral part of the financial statements
7
<PAGE> 8
MERIDIAN VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 2000 June 30, 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income (loss)........................... $168,339 ($114,781)
Net realized gain on investments....................... 7,623,443 2,503,550
Net increase in unrealized appreciation of
investments.......................................... 1,519,356 2,273,627
----------- -----------
Net increase in net assets from operations........... 9,311,138 4,662,396
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized capital gains.......... (3,077,502) (383,710)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from sales of shares.......................... 70,955,834 13,409,356
Reinvestment of distributions.......................... 2,661,055 274,369
Less: redemptions...................................... (16,832,684) (5,246,335)
----------- -----------
Increase resulting from capital share transactions... 56,784,205 8,437,390
----------- -----------
Total increase in net assets........................... 63,017,841 12,716,076
NET ASSETS
Beginning of year...................................... 24,912,455 12,196,379
----------- -----------
End of year (includes undistributed net investment
income (loss) of $168,339 and ($114,781),
respectively)........................................ $87,930,296 $24,912,455
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements
8
<PAGE> 9
MERIDIAN VALUE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the fiscal year ended June 30,
----------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
----------- ----------- ----------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value - Beginning of
Period.......................... $22.29 $19.30 $17.40 $15.32 $10.27 $9.87
----------- ----------- ----------- ---------- ---------- --------
Income from Investment Operations
----------------------------------
Net Investment Income (Loss)...... 0.05 (0.10) (0.19) (0.26) (0.10) (0.04)
Net Gains or Losses on Securities
(both realized and
unrealized)..................... 5.91 3.56 4.32 3.20 5.15 0.44
----------- ----------- ----------- ---------- ---------- --------
Total From Investment
Operations...................... 5.96 3.46 4.13 2.94 5.05 0.40
----------- ----------- ----------- ---------- ---------- --------
Less Distributions
-----------------
Distribution from Net Realized
Capital Gains................... (2.37) (0.47) (2.23) (0.86) 0.00 0.00
----------- ----------- ----------- ---------- ---------- --------
Net Asset Value - End of Period... $25.88 $22.29 $19.30 $17.40 $15.32 $10.27
=========== =========== =========== ========== ========== ========
Total Return...................... 29.63% 18.92% 26.05% 20.55%+ 49.17%+ 4.05%+
=========== =========== =========== ========== ========== ========
Ratios/Supplemental Data
-------------------------
Net Assets, End of Period......... $87,930,296 $24,912,455 $12,196,379 $7,340,110 $3,471,507 $715,021
Ratio of Expenses to Average Net
Assets.......................... 1.41% 1.63% 2.16% 2.51%* 2.55%* 2.78%*
Ratio of Net Investment Income
(Loss) to Average Net Assets.... 0.39% (0.65%) (1.35%) (1.96%)* (1.36%)* (.58%)*
Portfolio Turnover Rate........... 86% 124% 133% 144% 125% 77%
</TABLE>
+ The total returns would have been lower had certain expenses not been reduced
during the periods shown.
* Not representative of expenses incurred by the Fund as the Adviser waived
its fee and/or paid certain expenses of the Fund. As indicated in Note 3,
the Investment Manager reduced a portion of its fee and absorbed certain
expenses of the Fund. Had these fees and expenses not been reduced and
absorbed, the ratio of expenses to average net assets would have been 2.80%,
6.47% and 14.64%, and the ratio of net investment income to average net
assets would have been a loss of 2.25%, 5.28% and 12.44%, for the period
ended June 30, 1997 through June 30, 1995, respectively.
The accompanying notes are an integral part of the financial statements
9
<PAGE> 10
MERIDIAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES: Meridian Value Fund (the
"Fund") a series of Meridian Fund, Inc. (the "Company"), began operations on
February 10, 1994. The Fund was registered on February 7, 1994, under the
Investment Company Act of 1940, as amended, as a no-load, diversified,
open-end management investment company. The primary investment objective of
the Fund is to seek long-term growth of capital. In addition to the Meridian
Value Fund, the Company also offers the Meridian Fund. The following is a
summary of significant accounting policies:
a. INVESTMENT VALUATIONS: Marketable securities are valued at the last sales
price on the principal exchange or market on which they are traded; or,
if there were no sales that day, at the last reported bid price.
Short-term investments that will mature in 60 days or less are stated at
amortized cost, which approximates value.
b. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders; therefore, no federal income tax provision is required. The
aggregate cost of investments for federal income tax purposes is
$66,456,813, the aggregate gross unrealized appreciation is $9,682,932,
and the aggregate gross unrealized depreciation is ($3,616,348),
resulting in net unrealized appreciation of $6,066,584.
c. SECURITY TRANSACTIONS: Security transactions are accounted for on the
date the securities are purchased or sold (trade date). Realized gains
and losses on security transactions are determined on the basis of
specific identification for both financial statement and federal income
tax purposes. Dividend income is recorded on the ex-dividend date.
Interest income is accrued daily.
d. CASH AND CASH EQUIVALENTS: All highly liquid investments with an original
maturity of three months or less are considered to be cash equivalents.
Funds are automatically swept into a Cash Reserve account which preserves
capital with a consistently competitive rate of return. Earnings are
indexed to the Federal Reserve "Fed Funds Rate." Interest accrues daily
and is credited by the third business day of the following month.
e. EXPENSES: Expenses arising in connection with the Fund are charged
directly to the Fund. Expenses common to both series of Meridian Fund,
Inc. are allocated to each series in proportion to their relative net
assets.
f. USE OF ESTIMATES: The preparation of financial statements in accordance
with accounting principals generally accepted in the United States
requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities at the date of the financial
statements. Actual amounts could differ from those estimates.
g. DISTRIBUTIONS TO SHAREHOLDERS: The Fund records distributions to its
shareholders on the ex-date. The amount of distributions from net
investment income and net realized capital gain are determined in
accordance with federal income tax regulations which may differ from
generally accepted accounting principles. These "book-tax" differences
are either considered temporary or permanent in nature. To the extent
these differences are permanent in nature, such amounts are reclassified
within the capital
10
<PAGE> 11
MERIDIAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Distributions which exceed
net investment income and net realized capital gains are reported as
distributions in excess of net investment income or distributions in
excess of net realized capital gains for financial reporting purposes but
not for tax purposes. To the extent they exceed net investment income and
net realized capital gains for tax purposes, they are reported as
distributions of paid-in-capital. Permanent book-tax differences, if any,
are not included in ending undistributed net investment income (loss) for
the purposes of calculating net investment income (loss) per share in the
Financial Highlights.
2. RELATED PARTIES: The Fund has entered into a management agreement with Aster
Capital Management, Inc. (the "Investment Adviser"). Certain Officers and/or
Directors of the Fund are also Officers and/or Directors of the Investment
Adviser. Beneficial ownership in the Fund by Richard F. Aster, Jr.,
President, as of June 30, 2000 was 6.88%.
The Investment Adviser receives from the Fund as compensation for its
services an annual fee of 1% of the Fund's net assets. The fee is paid
monthly and calculated based on that month's average net assets. The
Investment Adviser has agreed to reimburse the Fund for any fiscal year's
expenses, including advisory fees, which exceed the most stringent limits
prescribed by any state in which the Fund's shares are offered for sale. The
federal government pre-empted the state's right to impose expense
limitations as a result of the National Securities Markets Improvement Act
of 1996. However, the investment adviser has agreed to voluntarily limit the
expenses of the Fund to 2 1/2%, should the need arise. The Investment
Adviser did not reimburse the Fund during 2000.
3. CAPITAL SHARES TRANSACTIONS: The Fund has authorized 25,000,000 common
shares at a par value of $.01 per share. Transactions in capital shares for
the year ended June 30, 2000 and June 30, 1999 were as follows:
<TABLE>
<CAPTION>
2000 1999
--------- --------
<S> <C> <C>
Shares sold 2,832,820 760,797
Shares issued on reinvestment of distributions 128,328 17,299
--------- --------
2,961,148 778,096
Shares redeemed (680,645) (292,605)
--------- --------
Net increase 2,280,503 485,491
========= ========
</TABLE>
4. COMPENSATION OF DIRECTORS AND OFFICERS: Directors and officers of the Fund
who are directors and/or officers of the Investment Adviser receive no
compensation from the Fund. Directors of the Company who are not interested
persons as defined in the Investment Company Act of 1940 receive
compensation in the amount of $1,000 per annum and a $1,000 purchase of
Meridian Fund or Meridian Value Fund shares, plus expenses for each Board of
Directors meeting attended. The aggregate compensation due the unaffiliated
Directors of the Fund as of June 30, 2000, was $1,413.
5. COST OF INVESTMENTS: The cost of investments purchased and the proceeds from
sales of investments, excluding short-term obligations, for the year ended
June 30, 2000, were $72,984,500 and $31,968,913, respectively.
11
<PAGE> 12
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders
of Meridian Value Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Meridian Value Fund (the "Fund") at
June 30, 2000, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as the "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at June
30, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
San Francisco, California
August 4, 2000
12
<PAGE> 13
MANAGEMENT'S DISCUSSION OF MERIDIAN VALUE FUND(R) PERFORMANCE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
During the fiscal year ended June 30, 2000, the Meridian Value Fund returned
29.63% compared to 7.24% for the S&P 500 with reinvested dividends, 14.32% for
the Russell 2000, and 47.65% for the NASDAQ. The Fund's performance was
materially affected by the strong market condition for small-to-mid
capitalization technology stocks, as reflected by the NASDAQ performance.
Approximately 30% of the Fund's investments were in small-to-mid capitalization
technology, telecommunications/cable equipment, and technology-related services
stocks. During the fiscal year ended June 30, 2000, the Fund's strongest
performing sectors were technology, telecommunication/cable equipment,
industrial services, and energy. The worst performing investments were in the
retail, industrial products, and consumer products sectors.
The Meridian Value Fund's strategy is to invest in stocks, across a range of
market capitalizations, that the Investment Adviser believes are undervalued in
relation to the issuer's long-term earnings power, asset value and/or stock
market in general. Investments include both smaller company equities and
mid-to-large capitalization stocks. Based on following this strategy, the Fund's
average return for the five-year period from June 30, 1995 to June 30, 2000 was
28.43% compared to 23.77% for the S&P 500 with reinvested dividends. The Fund
did not approach full investment status until June 30, 1995, with cash
comprising approximately 45-50% of the Fund's total portfolio from inception
until June 30, 1995. The Meridian Value Fund's average return from inception to
June 30, 2000 was 22.16% compared to 21.57% for the S&P 500 with reinvested
dividends.
Value of $10,000 invested in Meridian Value Fund & the S&P 500
<TABLE>
<CAPTION>
S&P 500 Meridian Value Fund
<S> <C> <C>
2/10/94 10000 10000
6/30/94 9579 9870
6/30/95 12075 10270
6/30/96 15212 15320
6/30/97 20490 18468
6/30/98 26665 23279
6/30/99 32724 27683
6/30/00 35094 35885
</TABLE>
Past performance is not predictive of future performance. Net asset value,
investment return and principal value will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
13
<PAGE> 14
[This page intentionally left blank.]
<PAGE> 15
[This page intentionally left blank.]
<PAGE> 16
MERIDIAN VALUE FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
This report is submitted for
the information of shareholders of
Meridian Fund, Inc. It is not
authorized for distribution to
prospective investors unless
preceded or accompanied by an
effective prospectus.
-----------------------------------------------------------------
Officers and Directors
RICHARD F. ASTER, JR.
President and Director
MICHAEL S. ERICKSON
HERBERT C. KAY
JAMES B. GLAVIN
MICHAEL STOLPER
Directors
GREGG B. KEELING
Treasurer and Secretary
Custodian
BANK OF NEW YORK
New York, New York
Transfer Agent and Disbursing Agent
PFPC, INC.
King of Prussia, Pennsylvania
(800) 446-6662
Counsel
MORRISON & FOERSTER LLP
Washington, D.C.
Auditors
PRICEWATERHOUSECOOPERS LLP
San Francisco, California
ANNUAL REPORT
MERIDIAN FUND LOGO
60 E. Sir Francis Drake Blvd.
Wood Island, Suite 306
Larkspur, CA 94939
(415) 461-6237
Telephone (800) 446-6662
JUNE 30, 2000
