Keeler Fund Investment Strategy

KELLER ALL-STAR GROWTH FUND

A Case Study

Presenters:

Arnonobal, Jastine Joyce

Galanza, Katherine Jill

Walinsundin, Rolando

I. INTRODUCTION

People are always wondering about how to invest their surplus cash and make it grow. It is most definitely a wise idea to invest the extra money in the right places rather than letting it go stagnant.

Growth fund seems to have proved their credibility as two of the best forms of investments in today's market. Obviously this type of funds provides a lot of benefits to their customers.

The primary benefits are that a person can save on the taxes by investing in these instruments, and at the same time, they also stand to get good returns on their investments. Many economic surveys clearly suggest that the mutual funds yield better benefits, and are seen to perform a lot better when compared to the stocks or the bonds.

The Keller Fund’s All-Star Growth Fund was a medium closed end investment company with approximately $300 million invested primarily in publicly traded common stocks. Shares in the fund were owned by large number of individual investors and were themselves are traded in a public stock exchange. Due to the large number of investors, like any other companies, Keller Fund aimed to provide the satisfaction of each investor they had.

Its objective is to provide long-term capital appreciation but unlike other companies, Keller Fund sought to achieve this objective by investing in a diversified portfolio of common stocks, preferably dominated by high technology stock with above potential growth for revenue and earnings.

High technology stocks were innovation driven that was why firms who invest in these kinds of stocks operate in a highly competitive environment. This aspect of the industry greatly affects high-tech stock stability. Although many high-tech stock issues are classified as growth stocks, the risk associated with investing in high-tech stock companies is just as prominent. Furthermore,...