Category : Notable and Quotable

Atul Gawande, Money Manager

I have no idea how this guy has a life when I merely glance at his bio—but that is not our concern. Substitute “money manager” instead of doctor and his commencement speech becomes worth thinking about. And his new book, Being Mortal, is a stupendously important book for anyone that is a certain age…or merely has parents.

This is a Great Response

“Logic and experience indicate that barring investments in a major, integral sector of the global economy would—especially for a large endowment reliant on sophisticated economic techniques, pooled funds, and broad diversification—come at a substantial cost,” wrote Harvard President Drew Faust last year, explaining the University’s refusal to join the divestment brigades. “I also find a troubling inconsistency,” she added, “in the notion that, as an investor, we should boycott a whole class of companies at the same time that, as […]

Well Said.

Mr. Gideon King’s parting notes on his decision to close down his hedge fund business: “Controlling capital and engaging intellectually is good work if one can get it. The business, on the other hand, has changed dramatically. As the endless quest for becoming institutional continues on, the soul of investing might get lost, as the unmitigated compliance processes become cumbersome and interfere with the purity of speculative contemplation.”

Social Media Lets Us Pretend to Know Something About Everything

by Jeffrey Bronchick | Chief Investment Officer Read this article from the New York Times and replace many of the nouns with “investor,” “stock,” and “investment industry.” Long before social media, Wall Street and its predecessors had a wildly viral network of passing rumors around that may or may not have any basis in reality. Historical readings back a few hundred years show that little progress has been made to date. “The analyst said…” “I read somewhere in the Wall Street Journal…” […]

Proxy Season and the Unusually Juicy Soap Opera at Tessera

We own Tessera at a cost of approximately $16 per share. Our thought process was simple: a conservative analysis of their IP portfolio’s current cash stream plus cash on the balance sheet suggested a valuation of $15 per share, leaving $1 of implied value for the venture portfolio of their Digital Optics (DOC) business, in addition to any potential unseen value trapped in the IP portfolio. Subsequent events, legal settlements, and client renewals have added an additional $4-$5 in value. […]

A Brief Presentation by Our CIO

Our CIO Jeff Bronchick gave a presentation at the Emerging Managers Summit in Chicago. CLICK HERE to download the slides.

Portable Nonsense

While this is a wonderfully snarky clip from the Economist, if I were paying “2 and 20” I am not sure I would think it’s so funny. It also seems to be a decent plug for Cove Street Capital Strategic Value – an absolute return, fee-based separate account. Go anywhere in global, public markets, no leverage, full transparency. _______________________________________________________________________ The following is reprinted from The Economist: Dear Investor, In line with the rest of our industry we are making some […]

In Memory of Steve Jobs

This is a prepared text of the Commencement address delivered by Steve Jobs, CEO of Apple Computer and of Pixar Animation Studios, on June 12, 2005. Reprinted from the Stanford Report. I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my […]

The VIX World of Difference

The VIX is the Chicago Board of Options (CBOE) Volatility Index and regardless of what it was intended to do, what it does do is offer a measure of investor fear and loathing. The higher the number, the more the investor is freaking out over any number of today’s global maladies.  For some perspective, in the calm before the storm, it traded in the low 20’s. During the Bear Stearns funding crisis of March 2008, it hit 32.24. When the […]

But This CEO Goes to 11

Many things can aggravate an investor in a very cheap stock. This one is particularly irking. Leo Apotheker, the “9 month old” CEO of Hewlett Packard, for reasons unbeknownst to those rationally running public companies, participated in the following dialogue with Sanford Bernstein analyst Tom Sacconagi on June 2, 2011 in regard to the CEO’s assertion that HP can hit a $7 per share cash earnings target by 2014. Tom: “On a scale of 1 to 10, what is your […]