Keeley Small Cap Fund on Cohu Inc.
Thesis
Cohu sells semiconductor test and inspection equipment and has a recurring-revenue business model. Its traditional automotive and industrial markets are recovering from cyclical lows while AI data-center processors and HBM inspection create new secular growth opportunities. The combination of cyclical recovery and new end markets supports the fund's positive view.
“The combination of legacy business recovery and secular growth in new end markets has driven substantial price appreciation.”
Key risks
- Automotive and industrial end markets are recovering from cyclical lows