Cove Street Capital, LLC (CSC) is the advisor to the Cove Street Capital Small Cap Value Fund (the Fund).

Philosophy

The Cove Street Capital Small Cap Value Fund is managed along the classic value tradition of Ben Graham and Warren Buffett which seeks superior long-term performance through the purchase of securities selling at prices materially below our estimate of intrinsic value. This process of "winning by not losing" endeavors to preserve capital from permanent loss (as distinguished from "quotational risk") and seeks to put us on the correct side of the mathematics of compounding. The Fund is a concentrated portfolio, which allows us to use our best ideas to drive performance. In our view, it is both a fool's errand as well as disingenuous to clients to over-diversify the results of careful decision-making and attempt to mimic indices to achieve performance. We believe that the way to achieve superior long-term returns is to have the intellectual courage to differ from the mood of the day and the indices to which we are compared.

The Fund...

  • invests in a universe of small cap companies with less than $5 billion market cap
  • allows up to 20% of its assets to be invested in securities of foreign companies
  • has the ability and temperament to hold cash when suitable ideas are not immediately forthcoming
  • advisor's employees are among largest shareholder groups

Fund Facts as of 3/31/2014

Portfolio Manager Jeffrey Bronchick, CFA
Institutional Class
Symbol
Cusip
Minimum
 
CSCAX
56166Y875
$10,000
Investor Class
Symbol
Cusip
Minimum
 
CSCSX
56166Y883
$1,000
Benchmarks
Russell 2000®
Russell 2000® Value
Russell 2500™ Value
Number of Holdings 36
5 Year Annualized Turnover 64.3%
Expenses
Institutional
Investor
 
Gross 1.55% | Net 1.45%
Gross 1.86% | Net 1.70%

Before you invest, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling 1-866-497-0097. The prospectus should be read and considered carefully before you invest or send money.

The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Mutual fund investing involves risk. Principal loss is possible. There is no assurance that the investment process will consistently lead to successful results. Value investing involves risks and uncertainties and does not guarantee better performance or lower costs than other investment methodologies. Investments in smaller companies involve additional risks such as limited liquidity and greater volatility. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.

The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe, representing approximately 10% of the total market capitalization of the Russell 3000® Index and the Russell 2000® Value Index includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500™ Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe.One cannot invest directly in an index.

A contractual fee waiver is in effect through May 31, 2015 to keep the expense ratio at or below 1.69%.

The Cove Street Small Cap Value Fund is distributed by Quasar Distributors, LLC.