Large Cap Value Q3 2015


Download the Factsheet
40 to 50

Companies in our fully invested, concentrated portfolio.

38

Year track record.

$3.4

Billion large cap value assets under management as of 09/30/2015.

100%

Upside market capture ratio since 2000.

80%

Downside market capture ratio since 2000.

  • Guides

    Philosophy

    • Fundamentals drive stock prices
    • Capital preservation improves returns
    • Culture shapes investment decisions
  • Shapes

    Process

    • Thorough, proprietary research by career analysts
    • Focus on valuation and risk controls
    • Team environment – group discussion/analyst decision
  • Generates

    Portfolio

    • Concentrated and diversified
    • Long-term/low turnover
    • Fully invested/limit on cash
  • Performance

    • Consistent pattern of results
    • Objective: Outperform the benchmark over the longer term

Large Cap Value

Quarter 3 2015

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000 Value Index
Annualized Returns As of 09.30.2015 Source: Factset and Russell® Past Performance is not indicative of future results Taxable client returns may vary from the results above due to tax-efficient portfolio management and higher fee schedules that result from lower portfolio minimums. Click for additional C&B Large Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Large Cap Value
  • Russell 1000 Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/Ebitda Forecasted P/E P/Normalized Earnings**
10.5% 10.8x 1.8x 15.6x 13.4x
6.0% 7.7x 2.3x 16.4x -
ROC 5 Year Avg 10.5% 6.0%
Cash Interest Coverage 10.8x 7.7x
Debt/Ebitda 1.8x 2.3x
Forecasted P/E 15.6x 16.4x
P/Normalized Earnings** 13.4x -
Period Ending: 09.30.2015 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Large Cap Value
  • Russell 1000 Value Index
# Holdings Market Cap ($B) Range Marketing Cap ($B) WTD Avg. Annual Turnover
45 $2.0 - $310.0 $72.8 30%
689 $0.5 - $358.0 $99.2
# Holdings 45 689
Market Cap ($B) Range $2.0 - $310.0 $0.5 - $358.0
Marketing Cap ($B) WTD Avg. $72.8 $99.2
Annual Turnover 30%
Source: Factset and Russell®

Top 10 Holdings1

RenaissanceRe Holdings Ltd. 3.5%
State Street Corp. 3.4%
United Parcel Service Inc. 3.3%
Wells Fargo & Co. 3.3%
Progressive Corp. 3.1%
Laboratory Corp. of America 3.1%
UnitedHealth Group Inc. 3.1%
Johnson & Johnson 3.0%
Twenty-First Century Fox Inc. 3.0%
Omnicom Group Inc. 2.9%

Top 10 Holdings1

RenaissanceRe Holdings Ltd. 3.5%
State Street Corp. 3.4%
United Parcel Service Inc. 3.3%
Wells Fargo & Co. 3.3%
Progressive Corp. 3.1%
Laboratory Corp. of America 3.1%
UnitedHealth Group Inc. 3.1%
Johnson & Johnson 3.0%
Twenty-First Century Fox Inc. 3.0%
Omnicom Group Inc. 2.9%

Sector Weights1

  • C&B Large Cap Value
  • Russell 1000 Value Index
  • Consumer Discretionary

    C&B Large Cap Value
    13.3%
    Russell 1000 Value Index
    5.4%
  • Consumer Staples

    C&B Large Cap Value
    8.6%
    Russell 1000 Value Index
    7.0%
  • Energy

    C&B Large Cap Value
    7.7%
    Russell 1000 Value Index
    12.8%
  • Financials

    C&B Large Cap Value
    27.3%
    Russell 1000 Value Index
    30.3%
  • Health Care

    C&B Large Cap Value
    13.6%
    Russell 1000 Value Index
    11.6%
  • Industrials

    C&B Large Cap Value
    18.4%
    Russell 1000 Value Index
    10.1%
  • Information Technology

    C&B Large Cap Value
    4.6%
    Russell 1000 Value Index
    11.3%
  • Materials

    C&B Large Cap Value
    3.5%
    Russell 1000 Value Index
    2.7%
  • Telecommunication Services

    C&B Large Cap Value
    Russell 1000 Value Index
    2.5%
  • Utilities

    C&B Large Cap Value
    Russell 1000 Value Index
    6.4%
  • Cash

    C&B Large Cap Value
    3.0%
    Russell 1000 Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

The U.S. stock market pulled back meaningfully during the quarter amid growing concerns about global economic health. Selling pressure took hold in mid-August when Chinese investors, spooked by weak Chinese export data and a reactive yuan devaluation, raced for the exits, triggering a cascade of selling around the globe. As a result, equity markets saw their first correction in 46 months – the third-longest stretch since the Great Depression – ending the quarter with the Russell 1000® Value Index (the Index) down 8.4%.

Additional Cooke & Bieler Large Cap Value Disclosures