The fund will be managed using an alternative strategy, combining the research experience of KAMCO with the active risk management techniques of the fund’s sub-advisor, Broadmark Asset Management.
The fund will seek to provide incremental downside market protection through Broadmark’s tactical hedging process.
John Keeley will serve as portfolio manager for the long-only equity exposure of the fund, which will be constructed similar to the Keeley Small-Mid Cap Value Fund (KSMVX). Christopher Guptil of Broadmark will serve as portfolio manager of the tactical risk management segment of the strategy.
The Keeley Alternative Value Fund’s investment objective is to achieve long-term capital appreciation, as well as to protect capital during adverse market conditions. For the equity investments, the fund intends to pursue its investment objective by investing in companies with small and mid-size market capitalizations, which currently defined as $7.5bn or less.
The advisor will focus the equity investments primarily on individual stocks undergoing corporate restructuring including: corporate spin-offs, companies emerging from bankruptcy, companies selling at or below actual or perceived book value, savings and loan and insurance conversions and distressed utilities.
Broadmark will assess overall stock market risk by monitoring such factors as monetary policy, valuation analysis, investor sentiment and momentum.
Mark Keeley, chief marketing officer of KAMCO, said: “We believe the Keeley Alternative Value Fund will be a natural complement to our current fund line-up, which currently focuses solely on long-only equity strategies.”
John Keeley, president and CIO of KAMCO, said: “Now, both our current and potential investors will receive greater transparency and a more attractive fee arrangement in a mutual fund format.”
