John Keeley

John Keeley

Last Update: 2014-08-14

Number of Stocks: 407
Number of New Stocks: 25

Total Value: $5,571 Mil
Q/Q Turnover: 9%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

John Keeley Watch

  • KEELEY All Cap Value Fund Comments on Williams Companies Inc

    Williams Companies, Inc. (WMB) was the Fund’s top performer, rising over 43 percent and adding 61 basis points to our performance. Shares of the energy infrastructure company jumped sharply in June when they announced news of a major restructuring where they will pay $6 billion for the remaining portion of Access Midstream Partners LP (they had owned 50%) from hedge fund Global Infrastructure Partners II. Williams then plans to merge its Midstream spin-off, Williams Partners LP (WPZ), with Access Midstream Partners once the acquisition of that entity is finished. The final company will be named Williams Partners LP, transforming the pieces into a pure-play general partner holding company. We believe the merged entities are a strategic t and should provide a distinct path of long-term growth for the stand alone firm.

    From John Keeley (Trades, Portfolio)’s KEELEY All Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Mid Cap Dividend Value Fund Comments on CIT Group Inc

    Although the Fund did not have any one company have a major impact on results during the quarter, CIT Group Inc. (CIT) was the top detractor after falling over 6 percent and costing the Fund 10 basis points in performance. Shares of the mid-market financing and leasing company dropped in late April after announcing earnings that were below expectations. The earnings miss was primarily due to lower interest income and a rise in provisions for credit losses. We continue to believe the company is well positioned in the current environment and their access to low-cost debt should foster future growth.

    From John Keeley (Trades, Portfolio)’s KEELEY Mid Cap Dividend Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Mid Cap Dividend Value Fund Comments on Iron Mountain Inc

    Iron Mountain Inc. (IRM) proved to be the top performing position during the second quarter after climbing over 28 percent and adding 45 basis points of return to the Fund. A leader in hard-copy storage, shares of Iron Mountain jumped sharply in June after receiving approval from the Internal Revenue Service (IRS) to operate as a Real Estate Investment Trust (REIT). The approval process had placed a cloud of uncertainty over the stock for a number of months, and should now return the focus to the fundamental outlook of the company. The conversion to a REIT was a catalyst for our decision to hold the stock, as that conversion will result in significant tax savings and an increased dividend yield.

    From John Keeley (Trades, Portfolio)’s KEELEY Mid Cap Dividend Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Mid Cap Value Fund Comments on Timken Co

    The Fund’s best performing industrial name during the quarter was Timken Co. (TKR), which climbed over 15 percent and added 32 basis points of performance to the Fund. The company recently spun-off its steel business after heavy pressure from activist firm Relational Investors. This breakup created TimkenSteel (TMST) a company with approximately $1.7 billion in revenue. Now, the former parent, Timken, can focus on its core bearings and transmission business, while the steel company can move forward with its own distinct strategy for growth. We believe the stand alone companies will allow investors to recognize the unique value proposition that each one offers while still leveraging the original synergies that existed between both units.

    From John Keeley (Trades, Portfolio)’s KEELEY Mid Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small-Mid Cap Value Fund Comments on Hanesbrands Inc

    Hanesbrands Inc. (HBI) was the top performing position during the quarter after rising over 28 percent and adding 34 basis points of performance to the Fund. The company posted impressive earnings results and is beginning to realize the benefits of the Maidenform Brands acquisition. They also acquired DB Apparel, a maker of intimate apparel and underwear, which was a legacy division of the old Sara Lee and should also have a positive long-term impact on earnings.

    From John Keeley (Trades, Portfolio)’s KEELEY Small-Mid Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Dividend Value Fund Comments on Protective Life Corp

    The top performing position during the quarter was Protective Life Corporation (PL) which climbed over 31 percent and added 85 basis points of performance to the Fund during the second quarter. Shares rose in June when Japan’s Dai-ichi Life Insurance Co. agreed to buy Protective Life for $5.7 billion. This deal was the largest ever by a Japanese insurer and we elected to sell the position soon after the announcement.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Dividend Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Dividend Value Fund Comments on American Vanguard Corp

    The second largest detractor during the quarter was American Vanguard Corporation (AVD) which declined over 38 percent and cost the Fund 30 basis points of return during the quarter. Shares of the specialty chemical manufacturer fell sharply in May after posting disappointing earnings results due primarily from elevated inventories from one of their main products. This elevated channel inventory level has been the result of volatile weather, especially in the Midwest.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Dividend Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Dividend Value Fund Comments on World Wrestling Entertainment

    In that sector, one name specifically, World Wrestling Entertainment (WWE), was the key holding that negatively impacted our performance in this sector. The stock declined over 58 percent and cost the Fund 70 basis points of return during the quarter. Shares of the entertainment company dropped sharply in May after investors became concerned over the terms of their new multi-year TV contract with NBCUniversal. Additionally, subscriptions to their WW Network, launched in February of 2014, have been below expectations.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Dividend Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Comments on Navient

    Recently, Sallie Mae (SLM) spun its FFELP (Federal Family Education Loan Program) division Navient (NAVI). In this case we elected to keep Sallie Mae Bank (SLM, the parent) and we sold Navient. Our rationale for selling NAVI was that it’s strictly a US government backed loan originator/servicer and will not likely grow as fast as SLM who dominates the private student lending market.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Comments on Sallie Mae

    Recently, Sallie Mae (SLM) spun its FFELP (Federal Family Education Loan Program) division Navient (NAVI). In this case we elected to keep Sallie Mae Bank (SLM, the parent) and we sold Navient. Our rationale for selling NAVI was that it’s strictly a US government backed loan originator/servicer and will not likely grow as fast as SLM who dominates the private student lending market. SLM offered better downside risk given its loans generate substantially wider spreads and virtually all of its loans are co-signed by the students’ parents. Further, by electing to remain invested in SLM, we should also benefit from the company’s efforts to sell additional products into its customer base like deposits, credit cards, etc. We believe this combination of upside opportunity derived from interacting early and often with students and downside protection via cosigned loans made SLM an attractive long-term investment.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Comments on Chicago Bridge & Iron

    The largest detractor during the quarter was Chicago Bridge & Iron (CBI). The industrial engineering company declined over 21 percent and cost the portfolio 23 basis points in performance. CBI has been a long-term holding and despite the short-term challenges, the stock has made a strong contribution to the Fund’s performance over the years. However, the shares became volatile in June amid negative accounting reports related to their earlier acquisition of Shaw Group and we elected to sell the position on the news.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Comments on Core-Mark Holding Company

    Another strong performer during the quarter was Core-Mark Holding Company (CORE) which climbed over 25 percent and added 29 basis points of performance to the Fund. Although revenue growth for the convenience store distributor was slightly below expectations, the company continues to expand its value-added services, such as fresh foods, and they have also announced a number of new contract wins.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Comments on Triangle Petroleum

    Triangle Petroleum (TPLM) was the Fund’s top performer, rising over 42 percent and adding 41 basis points of return during the quarter. Overall, our holdings in this sector are experiencing superior production growth. Triangle is strategically evaluating its business units and may spin-off or sell a division in the future. We have a favorable opinion of this potential restructuring, as we believe that decision could unlock significant value.

    From John Keeley (Trades, Portfolio)’s KEELEY Small Cap Value Fund Second Quarter 2014 Commentary.  


  • KEELEY Small Cap Value Fund Second Quarter 2014 Commentary

    In the second calendar quarter of 2014, the KEELEY Small Cap Value Fund (KSCVX) climbed 3.21 percent compared to a 2.05 percent rise for the Russell 2000 Index and a 2.38 percent increase for the Russell 2000 Value Index. After a volatile first quarter of the year, equity markets gradually pushed higher for much of the second quarter. The global uncertainty that unsettled markets early in the year subsided, which allowed investors to regain focus on domestic fundamentals that overall seem to show progress. The economic surprise of the month and the quarter was the unexpectedly low final result for first-quarter gross domestic product (GDP), which was revised down to a decline of 2.9 percent from a previous estimate of minus 1 percent. Although the first quarter's weakness was well known due to the harsh winter months, the magnitude of the downward revision called into question whether the recovery was faltering. The consensus, however, is that economic growth continues and may be accelerating. Much of the U.S. economic data, in fact, is at multi-year highs stemming from before the financial crisis, especially with respect to durable goods, private-sector employment, and housing numbers which were all strong in June. Corporate earnings growth continues to be the primary driver of gains in equities, and we remain pleased with the fundamental outlook for the majority of our holdings. However, an increase in the number of negative earnings pre-announcements raised eyebrows, and the sustainability of earnings growth bears watching. Our strong relative results during the second quarter were primarily driven by positive stock selection in the energy and industrials sectors. An overweight position in energy, which was easily the best performing sector in the Russell 2000 Index, also made a positive contribution.


    Our holdings in the energy sector proved to be exceptionally strong during the second quarter, with four of the Fund’s top five performing positions residing in that sector. Triangle Petroleum (TPLM) was the Fund’s top performer, rising over 42 percent and adding 41 basis points of return during the quarter. Overall, our holdings in this sector are experiencing superior production growth. Triangle is strategically evaluating its business units and may spin-off or sell a division in the future. We have a favorable opinion of this potential restructuring, as we believe that decision could unlock significant value. However, many of our energy holdings are very early in their life cycle and despite the potential upside, we may experience enhanced volatility from these positions as they grow.

      


  • Top Insider Buys Highlight: Macquarie Infrastructure

    CEO of Macquarie Infrastructure Co LLC (MIC) James Hooke bought 2,830 shares on July 17 at an average price of $66.5 per share. The total transaction amount was $188,195.


    Macquarie Infrastructure Company, a Delaware limited liability company, was formed on April 13, 2004. Macquarie Infrastructure has a market cap of $3.52 billion; its shares were traded at around $72.37 with a P/E ratio of 86.70 and P/S ratio of 3.60. The dividend yield of Macquarie Infrastructure stocks is 5.00%. Macquarie Infrastructure had an annual average earnings growth of 10.60% over the past 5 years.

      


  • KEELEY Alternative Value Fund First Quarter 2014 Commentary

    n the rst calendar quarter of 2014, the KEELEY Alternative Value Fund (KALVX) fell 2.61 percent compared to a 3.52 percent rise for the Russell 2500 Value Index and a 1.81 percent increase for the S&P 500 Index. After a strong year for equities in 2013, a more challenging environment welcomed the markets in 2014. Although the broad equity markets ended the quarter with minimal gains, that performance was masked by a quarter that experienced a great deal of volatility. Geopolitical concerns, specically regarding the Russian invasion of Crimea, added complexity to markets that were already beginning to experience some level of fatigue after two consecutive years of exceptional equity returns. Macroeconomic data painted a mixed fundamental picture. Investors attributed much of the decline in growth expectations here in the U.S. to unusually poor weather conditions. Although severe weather most likely had a negative inuence, it is uncertain as to what the full impact will be, especially with respect to corporate earnings. In the most recent quarter, companies continued to show earnings growth, but many also projected slower future gains and valuations continue to be elevated. News from abroad was of the greatest concern, where anemic economic activity in Europe and a hard landing in China are persistent worries. Lastly, notes released from the March Federal Reserve meeting indicated that they believe the economy remains on a sustainable upward trend. Those comments, coupled with an overall message that they remain supportive of a low interest rate environment, tempered investor fears and provided a much needed boost to the equity markets late in the quarter. During the rst quarter, the Fund trailed both the Russell 2500 Value Index and the S&P 500 Index. The combination of underperformance by the long-side of the portfolio with inconsistent hedging from Broadmark Asset Management resulted in a challenging quarter for the portfolio. The long-side of the portfolio was primarily impacted by negative stock selection during the quarter, although overweight positions in the lagging industrials and consumer discretionary sectors also detracted.


    Broadmark's investment process begins with an assessment of the fundamental economic environment through Valuation, Monetary Policy, and Investor Sentiment. Next they validate these qualitative factors with a more quantitative assessment though their multi-factor Volume/Breadth Momentum Model. Here is a brief survey of these "Four Pillars" of their investment process:

      


  • Pioneer Investments Keeps on Rolling

    How many times have we seen the same movie? The good or bad guy, chased by the law, going south. And when saying south, we mean Mexico. It seems to be the paradise for all U.S. citizens looking for some tranquility. What has never been seen though, is the escapee travelling on the Kansas City Southern (KSU). The train operator is commonly known as the NAFTA Railway, since it offers services across North America through a key partnership with Canadian National Railway (CN). In addition, the company owns former Grupo Transportación Ferroviaria Mexicana, today Kansas City Southern of Mexico. Hence, services today connect Canada and Mexico through the Midwest and Mississippi River basin, making the firm a true regional railroad operator. Most important, overall performance continues to catch the market’s attention, and there are clear evidences of gurus making long-term investments.


    Freighting Profits Along

      


  • Torchmark: More of the Same for Higher Profits?

    Torchmark Corporation (TMK)’s sustainable business model hit a bump in the road last year, when its health care subsidiary Liberty National Life reported a high agent turnover, causing a drop in sales. However, in an effort to improve agent retention, management reacted quickly, introducing new training, recruiting and sales processes, in addition to adding new managerial positions, so as to produce more qualified agents. Although it will take time until the situation is reversed, the company’s strategy has already shown results, increasing its agent count by 8% during fourth quarter fiscal 2013, and thereby boosting health sales by 2%. Furthermore, while life sales declined by 5%, a consequence of a 3% decline in agent count at the American Income Agency, the firm’s direct response channel was successful in offsetting these results, generating an 8% increase year over year in new sales.


    A Niche Target Group Can Go a Long Way

      


  • What´s Behind Iron Mountain's Earnings Growth

    Iron Mountain (IRM) stores records, primarily paper documents and data backup media, and provides information management services. The company’s information management services are divided into three main service categories: records management services, data protection and recovery services; and information destruction services. The company provides its services to commercial, legal, banking, health care, accounting, insurance, entertainment and government organizations.


    In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.

      


  • A Stock Recommended by Analysts, Not Bought by Gurus

    Sometimes a series of conditions coincide to give prospect investors the opportunity to collect rewards. For example, finding a market leading firm with stock selling at a discount and high earnings per share does not occur daily. The situation is all the more particular when analysts at financial institutions give the stock a positive review and expansion plans continue to be announced by management. Today, all that points straight at Kinder Morgan Partners (KMP). The largest independent owner and operator of petroleum product pipelines in the U.S. has however, not seen much transactions by gurus since the third quarter of 2013. So, why have gurus not bought into this stock when analysts continue to recommend it?


    Analysts, Projects and Performance

      


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