John Keeley

John Keeley

Last Update: 2014-05-15

Number of Stocks: 412
Number of New Stocks: 36

Total Value: $5,807 Mil
Q/Q Turnover: 11%

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

John Keeley' s Profile & Performance

Profile

John Keeley is President and Portfolio Manager/Analyst at Keeley Asset Management Corp., a registered investment advisor that he established in 1982.

Web Page:http://www.keeleyfunds.com

Investing Philosophy

John Keeley seeks capital appreciation through long-term value investing in small-cap stocks. He emphasizes the purchase of companies undergoing corporate redevelopment such as spin-offs, companies emerging from bankruptcy, securities trading below actual or perceived book-value, savings & loan and insurance conversions, and distressed utilities.

Total Holding History

Performance of Small Cap Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201334.6331.553.1
201223.8115.48.4
2011-7.292.08-9.4
3-Year Cumulative54.5 (15.6%/year)55 (15.7%/year)-0.5 (-0.1%/year)
201025.9815.0610.9
200921.6726.46-4.8
5-Year Cumulative136.9 (18.8%/year)125.5 (17.7%/year)11.4 (1.1%/year)
2008-40.18-37-3.2
20077.175.611.6
200619.5515.793.8
200516.124.9111.2
200432.941220.9
10-Year Cumulative180.2 (10.9%/year)104.1 (7.4%/year)76.1 (3.5%/year)
200318.6528.7-10.1
20022.72-22.124.8
200115.12-11.927.0
20006.61-9.115.7
19993.3221-17.7
15-Year Cumulative333.1 (10.3%/year)98.3 (4.7%/year)234.8 (5.6%/year)
199812.9928.6-15.6
19970.5233.4-32.9
19969.4223-13.6
19950.9437.6-36.7
1994-7.021.3-8.3
20-Year Cumulative405.2 (8.4%/year)483.2 (9.2%/year)-78 (-0.8%/year)

Top Ranked Articles

National Presto Industries - A Quality Company with an 8% Dividend Yield
Let’s start this article with a one-question quiz. GuruFocus and its investment community impress me every day with their investment acumen, so I have confidence in your abilities. Good luck! Read more...
Guru Stocks Raising Dividends: CTS, UBA, UDR, WDR, CHCO
This is the group of companies who raised their dividend during the week: CTS Corp., Urstadt Biddle Properties Inc. Cl A, UDR, Waddell & Reed Financial Inc., and City Holding Company. Read more...
Insider Buys at 52-Week Highs
Several companies have reported group insider buying or pricey singular insider buying as their companies near or hit their 52-week highs. The following three companies have reported these insider buys throughout the month of July. Watching group insider buying (especially at high prices) is important because it can signify a collective faith in the stability and potential for additional growth in a company. It can also be beneficial to note insider buys with large transaction amounts because insiders typically will not invest their money into a company if they know they are going to lose it. [b] Read more...
John Keeley Buys Kaiser Aluminum Corporation, Century Aluminum Co., Investment Technology Group In, Sells U-store-it Trust, Mcmoran Exploration Co., Lincoln Electric Holdings Inc.
Updates for John Keeley buys and sells during the first quarter. John Keeley is known as "Spin-off Doctor", he likes to buy spin-offs that others don't want. His most recent spin-off play: MUELLER WATER. If you like to buy unservalued small cap stocks, take a look at what John Keeley is buying. Read more...
John Keeley Buys NBTY Inc., NCR Corp., CIT Group Inc., The First American Corp., Sells ABB Ltd., Corning Inc., Exelon Corp. John Keeley Q1 Portfolio Update: Buys AAN, ADTN, ART, BP, C, CASY, CIT, CLF
John Keeley has been very successful with small cap investing. He also likes companies undergoing corporate redevelopment such as spin-offs, companies emerging from bankruptcy. This the Q1 update of his portfolio. Read more...
» More John Keeley Articles

Commentaries and Stories

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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 More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Kraft Is Making Cost Efforts
In this article, let's take a look Kraft Foods Group, Inc. (KRFT), a $34.43 billion market cap company, which is one of the largest consumer packaged food and beverage companies in North America, More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Why Anadarko Petroleum is a Solid Stock in a Promising Industry?
In this article, let's take a look at Anadarko Petroleum Corporation (APC), a $56.08 billion market cap company, which is one of the largest independent exploration and production companies in the world. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Alcoa Has Doubled in 12 Months!
In this article, let's take a look at Alcoa Inc. (AA), a $20 billion market cap, which is one of the world's largest producers of primary aluminum as well as one of the world's largest suppliers of alumina, an intermediate raw material used to make aluminum products for a variety of end-markets. More...

  • Currently 3.00/5

Rating: 3.0/5 (2 votes)

George Soros Reveals His Largest Stake
Hedge funds filled their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC). In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Soros Fund Management LLC.The fund reported its equity portfolio, as at the end of March. The total value of the portfolio amounted to $9.3 billion, up from $8.8 billion disclosed at the end of the previous quarter. Consequently, the fund's total return was 6.4% in the last quarter. The filing revealed that at the end of June, the fund added 150 new positions to its equity portfolio and sold out 65 positions. The top ten portfolio holdings as of the end of the quarter represented 25.62%. The largest changes from previous 13-F´s fillings are in the health care and financial sectors.In this article, let´s see Teva Pharmaceutical Industries Limited (TEVA) in which the fund holds the largest stake in terms of market value. The fund disclosed a $544.8 million stake with over 10.31 million shares.Drivers of ProfitabilityA $2 billion cost-saving plan as well as the company’s remaining $4 billion branded drug portfolio will continue to support the firm's profitability.Further, Teva focuses on innovation; it has numerous innovative drug products in development. Although we know it is very difficult to develop another key product such as Copaxone, maybe these new innovative drugs can lower the huge dependence on it. Copaxone has become the world's leading MS treatment and contributes nearly to half the operating profit.Growth OpportunitiesThe company is the largest pharmaceutical manufacturer with vertically integrated operations. In emerging markets, it has the scale and resources to help minimize the threat of low-cost producers. It has access and complex manufacturing capabilities, including respiratory and biosimilar drugs, that should help maintain the long-term growth opportunities on those markets. Talking about growing opportunities, the joint venture with Procter & Gamble (PG) in branded over-the-counter drugs also creates a space for growth.Acquisition of LabrysA few days ago, Teva announced the acquisition of Labrys which brings to Teva LBR-101, a fully humanized monoclonal antibody that binds to calcitonin gene-related peptide, which is currently in Phase IIb clinical trials for prevention of chronic and episodic migraine.Cash to InvestorsA company characteristic is that demonstrate its commitment to return cash to investor in the form of dividends. The Board of Directors, at its meeting on April 29, 2014, declared a cash dividend for the first quarter of 2014 of NIS 1.21 per share (approximately 30 cents according to the actual rate of exchange). The current dividend yield is 2.1%, which is considered good to protect the purchasing power.Return on EquityNow, let´s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry. Ticker Company ROE (%) TEVA Teva Pharmaceutical 5.62 ACT Actavis PLC -7.87 SNYNF Sanofi 6.53 AGN Allergan Inc. 15.24   Industry Mean 7 The company has a current ratio of 5.62% which is higher than the one exhibit by Actavis PLC (ACT), but below the Sanofi´s ROE and industry mean. In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment, so the ROE of Allergan Inc. (AGN) looks very attractive. It is very important to understand this metric before investing and it is important to look at the trend in ROE over time.Relative ValuationIn terms of valuation, the stock sells at a trailing P/E of 33.7x, trading at a discount compared to an average of 40.5x for the industry. To use another metric, its price-to-book ratio of 2x indicates a discount versus the industry average of 3.2x while the price-to-sales ratio of 2.3x is below the industry average of 3.57x. These metrics indicate that the stock is relatively undervalued and seems to be an attractive investment relative to its peers.As we can see in the next chart, the stock price has an interesting upward trend in the five-year period. The share price is more than 30 percent higher year to date, though it is up only marginally from a month ago.Final CommentAs outlined in this article, Teva should benefit from the $2 billion cost-savings plan, its plan to expansion into key emerging markets and the development of innovative products as well as strategic acquisitions.For these reasons, I would advise fundamental investors should consider adding this stock to their long-term portfolios.Other hedge fund gurus have also been active in the company. Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), John Keeley (Trades, Portfolio) and Ken Heebner (Trades, Portfolio) have bought the stock in the first quarter of 2014.Disclosure: Omar Venerio holds no position in any stocks or funds mentioned. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

5-year lows: ARMOUR Residential REIT, EXCO Resources, Fifth Street Finance, and Atlas Resource Partners
According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: ARMOUR Residential REIT Inc, EXCO Resources Inc, Fifth Street Finance Corp, and Atlas Resource Partners LP. More...

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Latest Guru Stock Picks


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide