Civeo Corp. (CVEO) was the Fund's largest detractor during the quarter after shares fell sharply in September when the company announced that electing REIT status would not be preferable and simultaneously announced a rather large reduction in Canadian guidance for Q4 2014 and 2015 due to project deferrals. The reduction in earnings guidance, while never pleasant, is understandable, but the decision to not seek a REIT election was both disappointing and confusing. Frankly, we've not seen a case where the reason a company gets spun off is so quickly abandoned. Activist investors have become involved seeking, among other things, the resignation of the CEO. Nonetheless, the failure to seek a REIT election was a sufficient blow relative to our investment thesis that we elected to sell the stock.
From John Keeley (Trades, Portfolio)’s KEELEY All Cap Value Fund Q3 2014 Commentary.
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