Richard Aster, who manages Meridian's growth and value funds, has gained quite a reputation in the fund industry over the last few decades. Most recognizable is the performance of his Meridian Growth Fund, which has been a consistent performer since its inception back in 1984 because of Aster's ability to select continually good small to mid-cap growth companies. Now having run his firm for 20 years, Aster has an impressive history that shows where he learnt the skills that are necessary to become the fine money manager that he is today. Before starting Aster Asset Management and setting up the Meridian Growth Fund, Aster worked for the U.S. Treasury Department, Newburger, Loeb & Company, and the Montgomery Division at the Bank of America Securities.

When picking stocks for the growth fund, Aster's strategy is focused not only on growth--trailing earnings growth is usually at least 15%--but also on price. If a company has good growth but does not meet Aster's strict price requirements, it will not be included in this fund. This type of growth-at-a reasonable-price (GARP) strategy really sends companies through the "Richard Aster ringer," and not too many are still standing when they emerge--the fund traditionally holds only about 50 companies. However, you can bet that the companies left standing are great picks.

Aster has a buy-and-hold mentality, which transferred over very well to the Meridian Value Fund when Aster started it ten years after the growth fund. Furthermore, this mentality makes Aster's funds prime candidates for us to follow. Aster's reluctance to flip stocks quickly, opting to allow them to develop over time and fully reach there true growth or value potential bodes well for the Coattail Investor.

Not only did Morningstar give five star ratings to both the growth and value fund, but Christopher Davis, one of Morningstar's analysts, states that, the fund's steady profile has led to superb long-term results: it ranks in or near the category's top 10% for the trailing three, five, and 10 years. Through it all, Aster, who launched the fund in 1984, has been at the helm. Davis concludes saying that, although Aster concentrates on certain sectors and has holdings of various market-cap sizes, "this fund's seasoned management, moderate volatility, and fine long-term record make it a terrific choice for mid- and small-growth exposure.

All of these factors, including consistent returns, experienced management and strict stock-picking guidelines add up to Aster Capital Management being a performer to watch.