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Satellite Potshots

— Download this post as a PDF — _______________________________________________________________________“Is there not A tongue in every star that talks with man, And wooes him to be wise? nor wooes in vain; This dead of midnight is the noon of thought, And […]

Other Recent CSC Thoughts and Ruminations That Did Not Fall Into a Coherent Narrative for Our June Strategy Letter

Risk—the extent of loss that a person or an organization can withstand without having to significantly change spending habits. THIS drives a lot more market activity than a Sharpe Ratio. The new Edward Thorp biography, “A Man for All Markets” […]

CSC Strategy Letter | Number 29 | Not Going Gently into the Night: Active Management and Electric Guitars

Download Cove Street Capital’s June 2017 Strategy Letter Number 29, “Not Going Gently into the Night: Active Management and Electric Guitars”

The Board of Extravagance

by Eugene Robin | Principal, Research Analyst Here at Cove Street, we often wonder: what would it be like to sit on a public company board? What do people actually do? How do board members defend the rights of the […]

CSC’s Women in Finance Program Welcomes Beatrice Woodruff

The Cove Street Capital Women in Finance Program—Summer Edition—welcomes Beatrice Woodruff to the team. After an intensive CFA week of training, and to paraphrase Vince Lombardi, she will receive the normal and customary beatings! Why am I here? — by […]

Tales From the Proxy…Cont’d.

By Jeffrey Bronchick, CFA | Principal, Portfolio Manager Colfax Corporation (Ticker: CFX) is a diversified industrial company whose present day life is cursed by the “next Danaher” label due to the presence of one Mitchell P. Rales, co-founder of both […]

And You Thought You Had Alternatives in the Portfolio

From the Grants Interest Rate Observer: P.P.S. To root out speculative excess, a periodic mission of the Beijing financial police, is easier said than done in a country with more than 1,000 exchanges (SunSirs, a research boutique that focuses on […]

The Beauty of No-Called Strikes, Permanent Capital, Patient Partners, and Motivated Owners

This was once our largest holding before it grew up on us. _______________________________________________________________________ The opinions expressed herein are those of Cove Street Capital and are subject to change without notice. Past performance is not a guarantee or indicator of future […]

This Dude Remains One of a Kind

Press Release National Beverage Corp. Continues To Refresh Via Shareholder Value + Healthy Beverages And MORE Cash! FORT LAUDERDALE, Fla.–(BUSINESS WIRE)– National Beverage Corp. (NASDAQ: FIZZ) today announced its eighth special cash dividend and released the following letter to shareholders […]

A Butterfly Beat Its Wings and…You Should Sign Up For This!

This was Cove Street Capital’s 2015 holiday book gift: From: Thomas N. Mahoney, CFA, CAIA, UBS Private Wealth Management To: Jeffrey Bronchick, CFA, Cove Street Capital Subject: CFALA Superforecasting challenge Dear Jeff: Thanks for sending me the book “Superforecasting” in […]

Notes From Proxy 2017 – Cont’d.

There are a number of highly successful companies that have corporate governance structures with several classes of stock. In many cases one of classes has essential voting control over all matters under the sun but not belonging to the heavens. […]

Disappearing Alpha

This is an interesting piece that essentially says, “by the time you have finished reading this, you will have have wasted your time reading this.” The “edge” has been dissipated, which certainly never stops anyone in the food chain of […]

Nice In Theory

We run separate accounts and a mutual fund, so we have 2 cents about Mr. Jason Zweig’s piece about the awful state of prospectus writing. That I actually have to think twice when I even mention the words mutual fund […]

CSC Strategy Letter | Number 28 | Hooey and the Sausage Making

Download Cove Street Capital’s March 2017 Strategy Letter Number 28, “Hooey and the Sausage Making”

The Annual Kabuki Dance of Executive Compensation in Corporate America

To paraphrase Einstein, things should be as simple as possible, but not too simple. From that starting point, good investing at Cove Street Capital begins with analysis of business model, security valuation, and an assessment of the people running the […]

And The Survey Says…

by Eugene Robin | Principal, Research Analyst The so-called “Trump Rally” has been fascinating to watch from our vantage point. For one thing, it has made us look stupid in comparison to the benchmark we are most often compared against […]

From the Archive – A Relative Value Trade that Paid Off

Strings Attached — a 2007 write-up of the vintage-guitar market. ‘Gits in Yer’ 401k — 2006 commentary on vintage guitars as a long-term investment.

Fact-Filled Party Pooping

John Hussman is an economist who runs some mutual funds. He has been bearish and miserably wrong for a long time, but he is thoughtful and presents legitimate data. This is a decent summary of the other side of post […]

Amos Tversky — An Amazing Man

Per the very readable new book by Michael Lewis, “The Undoing Project,” Amos Tversky kept these thoughts on a piece of paper by his desk. They are now on mine. People predict by making up stories. People predict very little […]

More Notes from the CSC Underground

by Ben Claremon, Principal and Research Analyst Before you start rolling your eyes, this is not what you might think it is. Sorry, you aren’t going to get any insightful political commentary from us. We are not spending any time […]

Jeffrey Bronchick at the Miami Behavioral Finance Conference

Download the presentation slides. _____________________________________________________________________ The opinions expressed herein are those of Cove Street Capital, LLC and are subject to change without notice. Past performance is not a guarantee or indicator of future results. Consider the investment objectives, risks, and […]

Here is an Area Ripe for Change Under Newco

Download a detailed analysis of how a government agency can go completely off the rails of rationality. And it’s probably worse than we think.

CSC Strategy Letter | Number 27 | Some Things Really Do Change

Download Cove Street Capital’s November 2016 Strategy Letter Number 27, “Some Things Really Do Change”

The Right Questions

by Dean Pagonis | CSC Research Analyst As the newest member of the Cove Street research team, I have generally been shielded from most ongoing client adventures. However, (for reasons that have always been clear to me!), I have been […]

Our Current Thinking

While we simply HATE to do things that seem to contribute 90% to the din of noise that surrounds investing, this was put in our current client presentation.

While Our Five Year Numbers Are Pretty Good…They Won’t Always Be.

From a New York Times interview with Davis Swenson, head of Yale endowment: Mr. Swensen likes teaming up to invest with his former analysts. For one thing, it can reduce the risk of panicky withdrawals. “We were talking to a […]

The opinions expressed herein are those of Cove Street Capital and are subject to change without notice. Past performance is not a guarantee or indicator of future results. You should not consider the information in this blog a recommendation to buy or sell any particular security. These securities may not be in your account by the time you receive this report, or may have been repurchased for your account. You should not assume that any of the securities discussed in this report are or will be profitable, or that recommendations we make in the future will be profitable or equal the performance of the securities listed in this report. Recommendations made for the last twelve months are available upon request. Cove Street Capital is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and expenses before investing.