Like all of our managers, Keeley has a proven track record backed by relevant education and extensive experience in the financial industry. In terms of education, Keeley earned a master's in business administration from the University of Chicago along with the Chartered Financial Analyst designation. More importantly, John Keeley Jr. has been in the investment industry for more than 40 years, having started his career as a financial analyst with Standard Oil in 1966. After working for several other firms in the industry, Keeley set off on his own, starting Keeley Investment Corp., a broker-dealer, in 1977.

The investment strategy of both the small-cap (less than $1.5 billion) and mid-cap ($1.5 billion to $5 billion) value funds are the same: the emphasis is placed on finding companies that have been overlooked by the market. This strategy focuses on companies that are going through corporate redevelopment and companies that are trading at low valuations, including spin-offs, companies emerging from bankruptcy, and companies trading below intrinsic value. The strategy does not simply bet on turnarounds - there is also a strict focus on financials, cash flow generation, balance sheet strength and growth.

This market-beating strategy, along with the fund's strong discipline, is the main reason that we feel Keeley Asset Management is a great addition to Coattail Investor. This is only further solidified by John Keeley Jr.'s significant personal investment in the funds he manages, not to mention the five-star rating the fund received from Morningstar. This is definitely a manager to watch closely.