The hardest thing about investing is isolating the elusive, always-different, information from the noise.

 

We love reading commentaries from a wide variety of investment firms.  We read them to find potential new ideas or just to learn something new about analysis or investing. We thought this passage from the Frank Fund’s  Q2 2013 commentary was spot on. The entire commentary is worth a few minutes of your time.

http://frankfunds.com/quarterly/2013_q2.pdf

“With every investment case there are mountains of potential information available. To paraphrase Kathryn Staley from The Art of Short Selling, where creativity and experience come into play are boiling down the mass of numbers to “the most important thing.” Every buy or sell decision, long or short, should come down to a “most important” set of data, and  the hardest thing about investing is isolating this elusive, always-different, information from the noise. As with Mr. Sabella’s problem of the day, it has nothing to do with the textbook, so you must draw on experience and creativity.” 

10 Top Value Ideas From The Keeley Small-Cap Value Fund

With the market hitting all-time highs, it is extraordinarily difficult to find new value ideas. At times like this, using typical screens or the 52-week low list is often unproductive. However, the search for new ideas must go on. One of the best methods of finding ideas is to search through the publicly disclosed portfolio of a well respected value mutual fund. In this article, we are going to look at the Keeley Small Cap Value Fund (KSCVX) here.

As Investing 501 begins to build its model portfolio, this will be one of the main methods we will use to find new ideas. If you want to know why we selected this particular fund, look here. If you are interested in our process for conducting these reviews, see the methodology discussion at the end of this article. First, our favorite 10 ideas from the KSCVX portfolio:

 

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