Despite strong performance from the leading Energy sector this quarter, the Fund’s leading detractor was HollyFrontier Corporation (NYSE:HFC), a refiner that produces gasoline, diesel, jet fuel, and other specialty products. The stock dropped over 32% during the quarter and cost the Fund 40 basis points in performance. Earnings expectations fell on continued pressure on refining margins. With a strong balance sheet, the company has bought back stock on the weakness and invested in high-return capital projects that should make it a stronger company when industry conditions improve.
From Keeley Funds' Keeley Mid Cap Dividend Value Fund second quarter 2016 commentary.
