John Keeley (Trades, Portfolio) is the founder and head of Keeley Funds, a money manager with $6 billion assets, seven mutual funds and two investment strategies – restructuring and dividend.
He and his managers said in their second quarter letter that, while many indicators suggest the U.S. economy is healthy, other signs are more worrisome:
“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.”
In the second quarter, Keeley’s team purchased 25 new stocks, for a total of 408 in the portfolio, which is valued at $5.57 billion.
These are the top new buys.
Keeley purchased 1,335,700 shares of Alere Inc. in the second quarter, for 0.9% of the portfolio. The stock’s price averaged $36 in the quarter.
Alere Inc., formerly known as Inverness Medical Innovations Inc., has a market cap of $3.31 billion; its shares were traded at around $40.15 with and P/S ratio of 1.10.
Keeley purchased 777,160 shares of Sotheby's, for 0.59% of the portfolio. The stock’s average second quarter price was $41 per share.
Sotheby's was initially incorporated in Michigan in August 1983. Sotheby's has a market cap of $2.66 billion; its shares were traded at around $38.47 with a P/E ratio of 20.40 and P/S ratio of 2.80. The dividend yield of Sotheby's stocks is 1%. Sotheby's had an annual average earnings growth of 3.1% over the past 10 years. GuruFocus rated Sotheby's the business predictability rank of 2-star.
United Financial Bancorp Inc. (UBNK, Financial)
Keeley purchased 1,977,372 shares of United Financial Bancorp in the second quarter, for 0.48% of the portfolio. The stocks’ price averaged $13 for the quarter.
Rockville Financial Inc. was incorporated under the laws of Connecticut in 2004. United Financial Bancorp Inc. has a market cap of $649.2 million; its shares were traded at around $12.29 with a P/E ratio of 77.70 and P/S ratio of 3.50. The dividend yield of United Financial Bancorp Inc. stocks is 3.3%. United Financial Bancorp Inc. had an annual average earnings growth of 9.1% over the past five years.
RSP Permian Inc. (RSPP, Financial)
Keeley purchased 800,000 shares of RSP Permian in the quarter, for 0.47% of the portfolio. The stock’s price averaged $28 for the quarter.
Ă‚
Ă‚
src="http://chart.gurufocus.com/1410978041804.png" />
RSP Permian Inc. has a market cap of $1.98 billion; its shares were traded at around $25.80 with and P/S ratio of 9.0.
Synovus Financial Corp (SNV, Financial)
Keeley purchased 890,000 shares of Synovus Financial, for 0.39% of the portfolio. The stock’s price averaged $23 for the quarter.
Synovus Financial Corp was incorporated under the laws of the State of Georgia in 1972. Synovus Financial Corp has a market cap of $3.4 billion; its shares were traded at around $24.58 with a P/E ratio of 20.40 and P/S ratio of 3.20. The dividend yield of Synovus Financial Corp stocks is 1.1%.
For more John Keeley (Trades, Portfolio) stocks, visit his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
