An Eye for Restructuring

John Keeley Jr.'s Small Cap Value Fund has produced an annualized 15.5% total return. The large-company S&P 500 returned 10.5% over the same time. So far in this year's wild ride (through Aug. 22) Keeley Small Cap Value is up 6.4%, ahead of the overall market. Luck or skill? Some of bo...

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Bibliographic Details
Published in:Forbes 2007-09, Vol.180 (5), p.172
Main Author: Heuslein, William
Format: Magazinearticle
Language:English
Subjects:
Financial performance
Investment advisors
Investment policy
Keeley, John Jr
Mutual funds
Online Access:Get full text
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Summary:John Keeley Jr.'s Small Cap Value Fund has produced an annualized 15.5% total return. The large-company S&P 500 returned 10.5% over the same time. So far in this year's wild ride (through Aug. 22) Keeley Small Cap Value is up 6.4%, ahead of the overall market. Luck or skill? Some of both for this Chicagoan. Keeley's good luck is that the last few years have been kind to smaller companies. Keeley's skill is finding value in murky situations: companies exiting bankruptcy or being spun off from larger companies; thrifts and mutual insurers in the process of converting to public ownership; and utilities in trouble with regulators or those that have gone outside their area of expertise and are now in distress. If you had invested ten grand with John Keeley and his turnaround investment strategies in January 1994, you'd be sitting pretty now, with $62,777. That's after a maximum 4.5% sales load, expenses and hypothetical federal taxes. Keeley is sitting prettier. The company that manages this fund is estimated to be worth $250 million, and Keeley owns all of it.
ISSN:0015-6914
2609-1445