Manager Commentary

As investors in our own funds, we are always interested in understanding the rationale behind the underlying holdings of our sub-advisors. We regularly engage in detailed discussions with each of our sub-advisors, and we invite them to share updates on a few of their holdings in our annual and semi-annual Shareholder Report.

Below are excerpts from current stock highlights shared by the Litman Gregory Masters Smaller Companies Fund sub-advisors.

Cove Street Capital's Jeff Bronchick on Taminco Corp.

TAM was buried in private equity for a decade since its spinoff from UCB and quietly went public in mid-2013. Its current (12/31/13) valuation appears to suffer under fears of illiquidity and the overhang from the 55% ownership of its private equity parent. Our research suggests that these temporary issues should subside as recognition of TAM's excellent franchise, growth opportunities, and free cash-flow generation should result in a higher multiple on higher cash flow in the years ahead. Read More»

FPA's Dennis Bryan on Western Digital Corp.

While revenue growth has been sluggish for many companies over the past few years, WDC's revenues are up over 50% since 2010. Read More»

Wells Capital's Dick Weiss on Ruckus Wireless

As Wi-Fi adoption increases to accommodate wireless traffic, we feel RKUS is in a unique position to benefit from these trends as the only "pure play" model amongst the comp group. Further, the company could see top-line growth in excess of 25% in each of the next two years as new customers adopt their technology and deploy Wi-Fi within their networks. Read More»