Category : Finance and Theory

Very Scary

Our takeaway on this speech is three-fold: We paraphrase: “Wise regulation, which is mostly now in place globally, will ensure that future financial crises will not billow out of control.” Wow, I didn’t realize that until 2010 the world didn’t have any regulators—no wonder why we have had periodic problems. Mrs. Yellen seems oblivious to enormous distortive effects of her institution’s suppression of interest rates below “market.” A lot of people are counting on the Federal Reserve. We wouldn’t. CLICK […]

A Word From Our Trader

by Matt Weber |  Director of Trading + Operations There is more to life than increasing its speed. -Mahatma Gandhi Even though we are “investors,” we are very aware of the High Frequency Trading (HFT) issues that emerge on our playing field. While the portfolio management team at CSC might profess not to care about a penny here and a penny there when they are looking for 50% and 100% moves over time (and that IS the correct big picture), […]

Why We Continue to Think the ISS Approach Toward Corporate Governance and Executive Pay is Moronic

CLICK HERE _________________________________________________ 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. Consider the investment objectives, risks, and expenses before investing. You should not consider the information in this blog a recommendation to buy or sell any particular security and this should not be considered as investment advice of any kind. You should not assume that any of the securities discussed in […]

Attention Almost Every Public Company with an A/B Ownership Structure: How to Create 35% More Shareholder Value in a Single Day and Set a Course for Further Gains

(Reprint) RICHMOND, Va., June 6, 2013 /PRNewswire/ — Media General, Inc. (NYSE: MEG) and privately held New Young Broadcasting Holding Co., Inc., both local broadcast television and digital media companies, today announced a definitive agreement to combine the two companies in an all-stock merger transaction. The new company will retain the Media General name and will remain headquartered in Richmond, VA. Media General owns 18 network-affiliated stations, and Young owns or operates 12 network-affiliated stations. The combination will create a […]

The Nonsense Math Effect

Please insert the phrases “money manager,” “hedge fund,” “large pension plan,” and “underperformance” at will throughout this piece.  The Nonsense Math Effect  Mathematics is a fundamental tool of research. Although potentially applicable in every discipline, the amount of training in mathematics that students typically receive varies greatly between different disciplines. In those disciplines where most researchers do not master mathematics, the use of mathematics may be held in too much awe. To demonstrate this I conducted an online experiment with […]

Found: The Lost Decade

Even if you repeat it enough, it doesn’t make it true. Unless you are burdened with a few hundred billion to manage, you do NOT have to invest in a market capitalization weighted index which, by mathematical design, is moving you toward more expensive stocks.

The Simple Life of Cash

It does take some creativity and high IQ for many to justify “2 & 20.” I also think a Mrs. Montier might insist on a better picture.  Click here to read more.