Category : The Business of Money Management

Grinnell College

There is a lot of money in the world and there are often fascinating stories behind it. This is a great story and what also makes it great is what a pertinent lesson it is for “some people” to understand how much more can be accomplished in a world that encourages happy wealth creation rather than defensive wealth preservation. And to add to Nelson Algren’s “three rules of life”: “Never play cards with a man called Doc. Never eat at […]

A New Beginning

Forestar Announces CEO Transition, Management Promotions and Board Retirements  ************************  September 28, 2015 06:45 AM Eastern Daylight Time AUSTIN, Texas–(BUSINESS WIRE)–Forestar Group Inc. (NYSE: FOR) today announced that James M. DeCosmo, President and Chief Executive Officer, stepped down September 25, 2015. The Board of Directors has named Phillip J. Weber, Chairman of the company’s Real Estate Investment Committee and formerly Executive Vice President – Water Resources, as Chief Executive Officer. Prior to joining Forestar, Mr. Weber served in key executive […]

Mini Book Review and Thoughts | “Minding the Markets: An Emotional Finance View of Financial Stability” — David Tuckett

I will ignore the somewhat silly premise of the book which was to analyze the emotional nature of “money managers” and thus glean some clues as to how to prevent future financial crashes. But I would note the following: If this is what passes for money management in the UK, they have a terrible problem. The structure of money management firms and their relationship with clients is almost always an enemy to actually achieving client goals. Don’t check short term […]

We Would REALLY Like to Know How Many Times This Happens

Dole C.E.O. and Aide Found Liable for $148 Million in Buyout

Investment Management is Not a Drinking Game

Aside from a mayonnaise issue, one of the largest pet peeves here is the following: focusing one’s time on finding interesting businesses and values first and then considering some macro considerations next is known as “Bottom-up” investing. It is NOT “BottomS Up.” Have you ever heard someone say we are a Tops Down investor? I didn’t think so. Please assist us in stamping this out.

The Investment World Under Hillary Clinton: Part I

This is certainly our favorite exchange this quarter in the ongoing dialogue between management and shareholders at Richardson Electronics (RELL). The pertinent facts you need to know here are that there is an “A-B” structure that keeps voting control with a 71-year-old CEO…and that said CEO is investing for growth versus “short-termism.” Shareholder (Steve Bush): Well, thank you for taking my call. CEO Edward J. Richardson: Hi, good morning Steve. Shareholder: I guess, I’d follow-up with the last caller and […]

Capital Allocation 101

Sadly, most CEOs don’t read this. They should.

The Fire is Burning – OM Group Continued

Related: Plus ça Change, Plus C’est La Même Chose. ************************ The following is a letter by Wynnefield Capital Management to fellow shareholders of OM Group (OMG), released June 11, 2015: ************************ Wynnefield Capital Management, LLC 450 7th Avenue, Suite 509 New York, NY 10123 OMG’s Board Orchestrates a Decade of Disaster   Dear fellow shareholders, Wynnefield Capital is an investment management firm focused on an equity small-cap value special situations strategy that practices constructive activism. The firm was founded by […]

The Good News is We Are on the “Public” Side

Managing $163 billion is not easy. What this piece points out is: It’s generally right. “Private” or “Alternatives” are a good idea only when practiced in small size and in small distribution. What is clear is that “alternative” investing as practiced institutionally is neither. Public pension math is a problem. Focusing solely on the asset part of the equation leaves one susceptible to the problems NY—among many others—is facing. The sad fact is that the liability side is where the […]

Pondering Things Way Out of Our Control

by Eugene Robin | Research Analyst The magnitude of the recent price decline caught many of “us” off guard and caused many (including Cove Street) to re-think our notion of what constitutes a sustainable oil price. Here, we analyze the somewhat complex question of “is $40 oil sustainable?” Currently, with storage in the US looking like it’s about to hit escape velocity (see below), short term price pressures will continue as long as the supply overhang exists. While refiners will […]