John Keeley

John Keeley

Last Update: 02-08-2016

Number of Stocks: 325
Number of New Stocks: 13

Total Value: $3,530 Mil
Q/Q Turnover: 5%

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

John Keeley Watch

  • Keeley Funds Comments on HollyFrontier Corp

    The second largest detractor was HollyFrontier Corporation (NYSE:HFC) which fell over 18 percent and cost the Fund 24 basis points in performance during the fourth quarter. The company was a solid performer leading up to the quarter. Although earnings results were reported as expected, given the decline in spreads, profit margins may decline along with unplanned maintenance downtime.


    From the KEELEY Mid Cap Dividend Value Fund commentary 4th quarter 2015.

      


  • Keeley Funds Comments on Ryder Systems

    The largest detractor was Ryder Systems (NYSE:R) which fell over 23 percent and detracted 34 basis from our results during the quarter. The company reported disappointing earnings results as they were negatively impacted by execution issues which led to lower utilization and maintenance inefficiencies. A decrease in used vehicle pricing also weighed on the stock.


    From the KEELEY Mid Cap Dividend Value Fund commentary 4th quarter 2015.

      


  • Keeley Funds Comments on EPR Properties

    The Fund’s second largest contributor was EPR Properties (NYSE:EPR) which increased over 13 percent and added 24 basis points of performance during the quarter. The specialty Real Estate Investment Trust (REIT) reported third quarter adjusted funds from operations (FFO) that exceeded expectations with a 10 percent increase in revenue from the prior year quarter. The company also raised guidance for the full year.


    From the KEELEY Mid Cap Dividend Value Fund commentary 4th quarter 2015.

      


  • Keeley Funds Comments on Autoliv

    The Fund’s top performing position was Autoliv Inc. (NYSE:ALV) which climbed over 14 percent and added 25 basis points of return to the Fund during the quarter. The company reported better than expected results. Sales were strong across the board as active safety continues to perform well. The company also looks to gain additional market share in the airbag market given the recent struggles of their main competitor.

      


  • KEELEY Mid Cap Dividend Value Fund Commentary - 4th Quarter 2015

    In the fourth calendar quarter of 2015, the KEELEY Mid Cap Dividend Value Fund (KMDVX) rose 1.28 percent compared to a 3.12 percent increase for the Russell Mid Cap Value Index. After a challenging third quarter, equity markets rebounded to post positive gains in the fourth quarter. However, many of the factors that weighed on markets throughout 2015 remain, and will most likely play a key role in 2016. The volatility in energy prices continued, and the situation may become even more volatile as companies succumb to the pressure of sustained low energy prices. China’s slowing growth is also having a spillover effect on the global economy and has placed additional pressure on the beleaguered energy sector. The decision by the Federal Reserve to finally end their run of monetary excess was welcomed by the markets, and we hope the decision will allow investors to finally place greater focus on company fundamentals going forward. One bright spot in recent years has been the U.S. consumer. Many factors point to continued momentum from the consumer, as employment growth, strength in housing, improving balance sheets, and an uptick in consumer confidence were all positive elements in the fourth quarter. Although the Keeley Mid Cap Dividend Value Fund posted a positive absolute return during the quarter, we trailed the benchmark. Despite some positive data points for the consumer, the consumer discretionary sector lagged, barely producing a positive result in the fourth quarter. Our overweight to the consumer discretionary sector had a negative impact, but we fortunately offset that negative with good stock selection and consumer discretionary made a positive contribution overall. The largest detractor during the quarter was our stock selection within financials. Technology, which was the best performing sector during the quarter, was our second largest detractor, where our stock selection had a negative impact. Energy continued to lag and was the only sector in the Russell Mid Cap Value Index to produce a negative return. We benefited from an underweight position, but stock selection caused a net detraction for the quarter.


    The Fund’s top performing position was Autoliv Inc. (NYSE:ALV) which climbed over 14 percent and added 25 basis points of return to the Fund during the quarter. The company reported better than expected results. Sales were strong across the board as active safety continues to perform well. The company also looks to gain additional market share in the airbag market given the recent struggles of their main competitor.

      


  • Keeley Funds Comments on Baxalta Inc.

    The Fund’s second best performer was Baxalta, Inc. (NYSE:BXLT) which climbed over 23 percent and added 68 basis points of return to the Fund during the quarter. The spin-off from Baxter rebounded nicely during the quarter and shares were boosted on takeover speculation. A bid from rival Shire came late in the quarter and we anticipate the share to move closer to that takeover bid in the coming months.


    From the Keeley All Cap Value Fund 4th quarter 2015 shareholder letter.

      


  • Keeley Funds Comments on Mylan N.V.

    The Fund’s largest contributor during the quarter was Mylan N.V (NASDAQ:MYL) which rose over 34 percent and added 84 basis points of return to the Fund. Shares were initially weak following its failed bid to merge with rival Perrigo (NYSE:PRGO). We viewed the failed bid as a positive as we were skeptical of the synergies between the two companies. We increased our exposure to the stock during the weakness as we believe the shares are very cheap on a valuation basis.


    From the Keeley All Cap Value Fund 4th quarter 2015 shareholder letter.

      


  • Keeley Funds Comments on Knowles Corp

    The fund’s second largest detractor during the quarter was Knowles Corp. (NYSE:KN) which declined over 27 percent and cost the Fund 62 basis points of performance during the quarter. The supplier of acoustic solutions to the mobile communications industry, and former spin-off of Dover Corp., continues to be a challenging position for the firm. Although earnings exceeded expectations due to a lower tax rate, the company lowered guidance despite getting back on the Apple iPhone 6S platform. Additionally, specialty component sales in the wireless base station business were weaker due to lower telecom cap ex, mainly in China, and more recent concerns of depressed demand for smartphones have pressured the stock. Looking out into 2016, the China telecom spend is expected to rebound, the Audience acquisition should become accretive and the company should further increase market share on the iPhone 7.


    From the Keeley All Cap Value Fund 4th quarter 2015 shareholder letter.

      


  • Keeley Funds Comments on Del Taco Restaurants Inc.

    The Fund’s largest detractor during the quarter was Del Taco Restaurants Inc. (NASDAQ:TACO) which fell over 23 percent and cost the fund 62 basis points of performance. The stock traded down during the quarter based on fears that an economic downturn would negatively impact same store sales. We are maintaining our position in the company and have been pleased with the efforts of a new management team that has been tasked with restructuring the company.


    From the Keeley All Cap Value Fund 4th quarter 2015 shareholder letter.

      


  • KEELEY All Cap Value Fund Commentary - 4th Quarter 2015

    In the fourth calendar quarter of 2015, the KEELEY All Cap Value Fund (KACVX) increased 3.16 percent compared to a 5.41 percent rise for the Russell 3000 Value Index. After a challenging third quarter, equity markets rebounded to post positive gains in the fourth quarter. However, many of the factors that weighed on markets throughout 2015 remain, and will most likely play a key role in 2016. The volatility in energy prices continued, and the situation may become even more volatile as companies succumb to the pressure of sustained low energy prices. China’s slowing growth is also having a spillover effect on the global economy and has placed additional pressure on the beleaguered energy sector. The decision by the Federal Reserve to finally end their run of monetary excess was welcomed by the markets, and we hope the decision will allow investors to finally place greater focus on company fundamentals going forward. One bright spot in recent years has been the U.S. consumer. Many factors point to continued momentum from the consumer, as employment growth, strength in housing, improving balance sheets, and an uptick in consumer confidence were all positive elements in the fourth quarter. Although the Keeley All Cap Value Fund posted a positive absolute return during the quarter, we trailed the benchmark. The sluggish energy sector was once again the worst performer and the only sector to produce a negative return in the Russell 3000 Value Index during the fourth quarter. Stock selection was the primary factor in our relative results, as our sector allocation made a positive contribution during the quarter. An underweight position to the lagging energy sector and overweight position in health care, were the key factors in our positive allocation effect. Stock selection in the financials and technology sectors were the key elements that detracted from our results during the quarter. Along with our overweight position, strong stock picking in health care, which had two of the Fund’s top performers, made a strong contribution to our results.


    The Fund’s largest detractor during the quarter was Del Taco Restaurants Inc. (NASDAQ:TACO) which fell over 23 percent and cost the fund 62 basis points of performance. The stock traded down during the quarter based on fears that an economic downturn would negatively impact same store sales. We are maintaining our position in the company and have been pleased with the efforts of a new management team that has been tasked with restructuring the company.

      


  • Arnold Van Den Berg Cuts Stake in Coca-Cola by Nearly Half

    Arnold Van Den Berg, who founded Century Management in 1974, reduced 39 stakes in the fourth quarter with most reductions below 10%. Following are his largest reductions.


    The largest reduction was in Great Lakes Dredge & Dock Corp. (GLDD) in which he reduced his stake by 99.87% with an impact of -0.68% on the portfolio.

      


  • Mariko Gordon's Largest Cuts During the 3rd Quarter

    Mariko Gordon (Trades, Portfolio), CFA, reduced 10 of her existing stakes by more than 20% in the third quarter.


    Gordon is the founder of Daruma Capital Management, which she founded in 1995 with zero assets.

      


  • Weekly CEO Buys Highlight: Prospect Capital, Sears Holdings, Calamos Asset Management, Opko Health, FS Investment

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Prospect Capital: CEO John F. Barry bought 2,805,500 shares

      


  • 5-Year Lows: Hecla Mining, Solar Capital, Atwood Oceanics, Harsco

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year lows: Hecla Mining Co., Solar Capital Ltd., Atwood Oceanics Inc., Harsco Corp.


    Hecla Mining Co. (NYSE:HL) reached $1.96

      


  • MasterCard, Visa and Lamar Advertising Are Among Chuck Akre's Stocks With High Dividend Yields

    Chuck Akre (Trades, Portfolio), founder of Akre Capital Management LLC, has nine stocks in his portfolio that are high dividend producers.


    Akre has been in the securities business since 1968 and continues to be the primary person responsible for his firm's investment advisory services and investment selection. Akre likes to buy companies with strong business models demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share.

      


  • 5-Year Lows: MDU Resources Group, National Fuel Gas, AmeriGas Partners, Boardwalk Pipeline Partners

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year lows: MDU Resources Group Inc. (NYSE:MDU), National Fuel Gas Co. (NYSE:NFG), AmeriGas Partners LP (NYSE:APU) and Boardwalk Pipeline Partners LP (NYSE:BWP).


    MDU Resources Group reached $16.82

      


  • Keeley Funds Comments on Bonanza Creek

    Finally, although we are underweight energy and that decision made a contribution to our results during the quarter, our largest detractor was Bonanza Creek (NYSE:BCEI), which fell over 77 percent and cost the Fund 69 basis points in performance. With new management and exposure to the high return Wattenburg shale region in Colorado, BCEI had ample opportunities for strong and profitable production growth. Unfortunately, the precipitous drop in oil prices along with a slightly levered balance sheet attracted the short sellers who have pummeled the stock. We exited the stock at this juncture as a tax advantage and also feel there is more upside in other energy names based on the pressure on all stocks in the sector.

      


  • Keeley Funds Comments on L.B. Foster and Co.

    The industrials sector was difficult during the quarter and L.B. Foster and Co. (NASDAQ:FSTR) was the largest detractor in the sector and the portfolio’s second largest detractor overall. The stock fell over 64 percent during the quarter and continues struggle after falling earlier in the year, costing the Fund 54 basis points in performance. The company is still reeling from a legal battle with long-time client Union Pacific (NYSE:UNP), which is lasting longer the expected. Management thought the lawsuit was controllable but UNP continues to press and will not settle. This resulted in management withdrawing all UNP related business from its earnings guidance. The company also made an acquisition of some oil service assets in an attempt to diversify its business. Given the decline in oil, one could argue the purchase was ill-timed. But we continue to see a company selling for less than ten times earnings after eliminating UNP revenue, which basically gives zero value for the recent acquisitions.

      


  • Keeley Funds Comments on Carrol’s Restaurant Group

    Another strong performer during the quarter was Carrol’s Restaurant Group (NASDAQ:TAST) which rose over 14 percent and added 16 basis points of performance to the Fund during the quarter. The company has exceeded the accretion goals from its prior acquisition of a large Burger King franchisee. In addition, Burger King has been much more nimble in adjusting its menu versus McDonald’s, thereby taking share as consumer tastes have evolved. With the strong stock performance and the shares nearing fair value, we have been trimming our position.

      


  • Keeley Funds Comments on Flowers Foods Inc.

    The fund’s top performing position during the quarter was Flowers Foods Inc. (NYSE:FLO) which rose over 17 percent and added 20 basis points of return to the Fund. Although the company resides in the defensive consumer staples sector, which benefited the stock as investors sought protection, Flowers is finally starting to see the benefits from the Hostess bakery operations they acquired out of bankruptcy. They also recently announced the acquisition of two organic bread manufacturers, providing a growth path in higher margin products.

      


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