Small cap and spin-off Guru John Keeley did very well for many years. But it was tough in 2008. Now he is upbeat with the improving economic conditions and positioned his portfolio accordingly. This is his Q3 portfolio update.
In his most recent shareholder letter, John Keeley wrote:
As we mentioned last quarter, over the 16 year history of this fund we have consistently been underweight the technology sector due to the “short-product cycle” of many names within the sector. While a strong performing technology sector can be a headwind for our portfolio, over the long-term we are confident in our ability to identify strong performing stocks outside of this sector. Specifically, the consumer discretionary sector has traditionally been an area where we have identified strong opportunities in the past. Our underweight position in this sector negatively impacted the portfolio during the third quarter and has been a detractor through much of 2009. While we remain concerned about the health of the consumer, we are beginning to find attractive ideas within certain industries and anticipate a more meaningful investment in this sector in the coming months.
Additionally, over the past year and during the third quarter, we prudently expanded our weight in the financial sector. We currently are more comfortable with “non-financial” financial stocks, such as asset managers and property and casualty insurance. Also, we typically avoid Real Estate Investment Trusts
(REITs) which we view more as a bond surrogate, and despite progress, we remain cautious toward the regional banks.
John Keeley buys heavily into home builders. He is heavy weighted with industrials. John Keeley owns 339 stocks with a total value of $6.6 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of John Keeley
In his most recent shareholder letter, John Keeley wrote:
As we mentioned last quarter, over the 16 year history of this fund we have consistently been underweight the technology sector due to the “short-product cycle” of many names within the sector. While a strong performing technology sector can be a headwind for our portfolio, over the long-term we are confident in our ability to identify strong performing stocks outside of this sector. Specifically, the consumer discretionary sector has traditionally been an area where we have identified strong opportunities in the past. Our underweight position in this sector negatively impacted the portfolio during the third quarter and has been a detractor through much of 2009. While we remain concerned about the health of the consumer, we are beginning to find attractive ideas within certain industries and anticipate a more meaningful investment in this sector in the coming months.
Additionally, over the past year and during the third quarter, we prudently expanded our weight in the financial sector. We currently are more comfortable with “non-financial” financial stocks, such as asset managers and property and casualty insurance. Also, we typically avoid Real Estate Investment Trusts
(REITs) which we view more as a bond surrogate, and despite progress, we remain cautious toward the regional banks.
John Keeley buys heavily into home builders. He is heavy weighted with industrials. John Keeley owns 339 stocks with a total value of $6.6 billion. These are the details of the buys and sells.
- New Purchases: A, AB, ARG, CFN, CNO, CSJ, DAN, DHI, DRQ, EWC, EWZ, EXH, FXI, GENC, IBM, ICE, IR, KEG, KMP, PETM, PHM, PMF, RF, RSP, SFE, TBNK, TNA, TOL, UNG, V, XHB, ZLC, ZNT,
- Added Positions: AAP, ANR, ATR, BAC, BOKF, BXS, CAH, CALM, CITZ, CLW, DBB, DDS, F, FMER, GBCI, GE, IBKC, ITG, LM, MGM, MTW, PRGO, STI, TEG, TNB, URI, WEC, XLF,
- Reduced Positions: AA, AIMC, AME, AMP, AYE, BCO, BKH, CAS, CME, CMP, CNL, CNP, COV, CP, CPN, CTZN, DBA, EXC, FIS, FMC, FTI, GDP, HCBK, HE, HON, HSC, ITT, ITUB, JNS, JOE, KRE, LAZ, LEG, LUK, MDR, MIR, MLM, MRK, MRO, NCR, NITE, NLY, PBR, PDC, POR, PXD, PXP, RLH, SJI, SO, SVU, SWN, SWSI, TKR, TMX, TYC, UNP, USB, UTR, WLT, WU, XRAY,
- Sold Out: ABT, ALL, ATI, AXP, BAS, BK, BP, CVO, DHIL, DM, DOV, DVN, ESSA, ETR, EWC.AX, FFNW, HXL, LNN, M, MHP, PBY, PVA, QCOM, RDS-B, RSP.AX, TIP, TITN, TWPG, VRTS, WGOV, WIRE, WTR, XEL, XOM,
This is the sector weightings of his portfolio:
| Industrials | 33.8% |
| Financials | 17.1% |
| Oil & Gas | 12% |
| Consumer Goods | 10.1% |
| Consumer Services | 8.5% |
| Basic Materials | 7.9% |
| Utilities | 4.3% |
| Health Care | 3.1% |
| Technology | 0.9% |
These are the top 5 holdings of John Keeley
- Walter Industries Inc. (WLT) - 1,721,667 shares, 1.56% of the total portfolio
- Ashland Inc. (ASH) - 2,091,722 shares, 1.36% of the total portfolio
- Petrohawk Energy Corp. (HK) - 3,718,140 shares, 1.35% of the total portfolio
- Flowserve Corp. (FLS) - 837,890 shares, 1.24% of the total portfolio
- Wabtec (WAB) - 2,178,482 shares, 1.23% of the total portfolio
