Cove Street Capital is sponsoring its first mutual fund, the CSC Small Cap Value Fund, which it begin managing on Jan. 27. The fund’s former investment manager was City National Asset Management, Inc.
Cove Street founder and CIO Jeffrey Bronchick is no stranger to the product. He has managed the $21 million fund since inception in September 1998, when he was chief investment officer at Reed, Conner & Birdwell Investment Management. City National acquired RCB in 2001 and served as the fund’s investment adviser, and the fund became part of the CNI Charter Funds, according to a spokesperson for Cove Capital.
Bronchick founded Cove Street in July 2011 and the spokesperson for Cove Street told Money Management Executive that the fund’s shareholders last year decided to part ways with City National and hand the fund’s reigns back to Bronchick.
The fund charges a management fee of 85 basis points and employs a research-driven, classic value approach, according to Bronchick. "The current macro-driven environment poses an interesting opportunity for investors who want to differentiate through the type of careful bottom-up research that Cove Street employs," he said.
Cove Street last month hired Greg Farber as director of institutional marketing and client service, to focus on distributing the fund to institutional investors, consultants, and independent registered investment advisers.
The firm currently manages $315 million in assets. The firm has a global mix of institutional and high-net-worth clients, and is one of the sub-advisers to the Litman Gregory Masters Select Smaller Companies Fund.
U.S. Bancorp Fund Services, LLC serves as the fund's administrator, fund accountant, and transfer agent, with Quasar Distributors, LLC serving as distributor, and custody through U.S. Bank N.A.