Cove Street Capital Ups Stake in Signature Group Holdings, Inc (SGGH)

Jeffrey Bronchick’s Cove Street Capital increased its stake in Signature Group Holdings, Inc (OTCMKTS:SGGH) to approximately 707,200 shares from 500,200 held previously, as revealed in a recent filing with the SEC. Currently the fund’s position amasses 5.79% of the company’s common stock.

Signature

Signature Group Holdings, Inc (OTCMKTS:SGGH) is a business and financial services company with holdings in cash, financial assets, and controlling ownership interests in North American Breaker Co., Inc. (NABCO) and Cosmed, Inc., its two operating subsidiaries. In 2013, Signature Group Holdings generated operating revenues of $43.6 million, with respective net loss per share of $0.85, higher than net loss of $0.64 per share in 2012.

The overall improvement in results for 2013 can be attributed to a reduction of some of the company’s corporate expenses, traction in earnings in the industrial supply segment, one-off profits generated in Special Situations, and also to the resolution of the ongoing legacy litigation issues in discontinued operations,” the company said in a statement.

For the fourth quarter of 2013, the company recorded earnings of $0.04 per share, which compares to a net loss of $0.49 per share in the year ago period. Signature Group undertook cost cutting initiatives, which include the layoff of eight employees, and the redemption of the 9.0% Notes Payable. The newly founded Delaware holding company is to endow with a robust organizational structure for inorganic growth and strengthen the existing operations. The company will also relocate to a smaller headquarters space this month, Signature Group Holdings, Inc (OTCMKTS:SGGH)’s Chairman and CEO Craig Bouchard said in the press release. All these initiatives aided Signature Group in reporting a profitable quarter.

Cove Street Capital is a classic value investor. According to its website, Cove Street run concentrated portfolios and offers value-based investment strategies to its client-partners. Founder Jeffrey Bronchick is the Chief Investment Officer of Cove Street Capital. Previously, he has worked as the Chief Investment Officer and a lead principal of Reed Conner & Birdwell, LLC. In the 1990s, he was one of the first columnists for the TheStreet.com. He graduated from the University of Pennsylvania and attended the London School of Economics.

The $538.6 million equity portfolio of the fund is mainly invested in Financial and Basic Materials stocks. Cove Street has a considerable position, worth $28.4 million (5.26% of the portfolio) represented by 1.3 million shares in Forestar Group Inc (NYSE:FOR). Another major holding of the fund is Taminco Corp (NYSE:TAM), which contains 1.3 million shares worth $25.5 million. Moreover, Cove Street Capital holds approximately 34,900 shares worth $23.2 million in Graham Holdings Co (NYSE:GHC).

Disclosure:none

Recommended Reading:

Hedge Fund News: Thomas Steyer, Bill Ackman & Eric Mindich

Wexford Capital Decreases Exposure to Diamondback Energy Inc (FANG)

Odey Asset Management Reports Stakes in LSE-listed Companies Boohoo.com (BOO) and Circassia Pharmaceuticals (CIR)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!