As mentioned, stock selection in the Technology sector was a leading detractor this quarter. One of the stocks pulling the Fund’s performance lower was Mitel Networks Corporation (NASDAQ:MITL), which declined over 23% and cost the Fund 47 basis points in performance. The stock price fell following the announcement of its acquisition of Polycom, which was structured as a cash and stock payment deal. The stock was pressured as another bidder appeared, increasing the risk that Mitel would pay a higher price. Following quarter-end, the Polycom board accepted the higher competitive offer and Mitel, having remained disciplined on the price, walked away with a $60 million break-up fee.
From the Keeley Small Cap Value Fund second quarter 2016 commentary.
