Small Cap Opportunities

Objective

Small Cap Opportunities is a disciplined investment approach for investing in the small capitalization sector of the equities market. We invest in firms with market capitalizations that are within the range of the Russell 2000 Index.

Approach

We select companies with solid earnings growth prospects from a universe of low P/E stocks that are underfollowed which provides excellent performance potential at lower risk. This common sense philosophy is the heart of Small Cap Opportunities’ Small Cap Value equity approach.

Process

We employ a fundamental, bottom-up methodology characterized by three factors: 1) A value-oriented approach: We select stocks with low P/E ratios based on trailing, not forecasted, earnings. 2) Attention to earnings: We seek companies with attractive earnings growth outlooks. 3) A focus on underfollowed, neglected, out-of-favor stocks: Through intensive research, we find good companies that are overlooked or not widely followed.

Performance

As of March 1, 2021 the Composite was renamed Keeley Teton Small Cap Opportunities. Performance shown prior to March 1, 2021 represents results achieved by the Skyline Small Cap Value Composite and its portfolio management team while they were part of Skyline Asset Management, L.P. The Small Cap portfolio management team joined Keeley Teton on March 1, 2021. This investment strategy was originally developed by three portfolio managers from Skyline Asset Management, L.P. This prior performance was represented by linked, asset-weighted monthly returns, trade-date valuation, beginning-of-the-month market values, and accrual-based accounting. Gross of fees returns were calculated gross of investment management and custodial fees and net of transaction costs. Net of fees returns were calculated net of actual investment management fees and transaction costs and gross of custodial fees. Prior to 1/1/06, net of fees returns were calculated by reducing monthly gross performance by 1/12th of the asset-weighted annual management fee. Returns also reflect transaction costs which were paid by the portfolios. The institutional advisory fee was 0.80%. Skyline Asset Management, L.P. claimed compliance with the Global Investment Performance Standards (GIPS ® ) and was independently verified for the periods 9/1/1995 – 12/31/2020.

Source: Keeley Teton Advisors, LLC. Past performance does not guarantee future results. Quarterly and YTD returns are not annualized. Inception date of the strategy is September 1, 1995. Net- of-fees composite returns were calculated based upon the investment advisory fees for the client portfolios contained within the composite. Advisory fees are negotiable and a table of standard fees is contained in the firm’s Form ADV Part 2A which is available at no cost at Keeley Teton Advisors, LLC. All performance results are net of commissions and transaction costs, and have been presented gross and net of investment advisory fees for illustrative purposes. Dividend income is recorded on ex-dividend date or as soon after the ex-dividend date as the information becomes available to Keeley Teton Advisors, LLC. Interest income is recorded on the accrual basis. Performance results for the index includes reinvested dividends but, unlike the strategy’s returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the index. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal will fluctuate so that an investor’s portfolio, when liquidated, may be worth less than the original cost/balance. As with any investment, there is a potential risk of loss. Smaller and medium-sized company stocks are more volatile and less liquid than larger, more established company securities. The Russell 2000 Value and Russell 2000 Index is an unmanaged index and cannot be invested in directly. The Russell 2000 Index is an unmanaged index of 2,000 small cap U.S. stocks that is generally considered to be representative of small capitalization issues in the U.S. stock market. The Russell 2000 Value Index measures the performance of the small cap value segment of the U.S. equity universe. Index performance is presented for informational purposes. The growth chart presented above represents cumulative performance with a beginning value of 100 at the inception date (09/1/1995) and is based on compounded monthly performance data (gross and net) versus the index shown. Direct investments into an index are not possible.