Small Cap Value Q3 2015


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40 to 60

Companies in our fully invested, concentrated portfolio.

7

Year track record.

$352

Million small cap value assets under management as of 09/30/2015.

109%

Upside market capture ratio since 8/1/08.

75%

Downside market capture ratio since 8/1/08.

  • 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

Small Cap Value

Quarter 3 2015

Equity Composite Performance

  • Cooke & Bieler - Gross of fees
  • Cooke & Bieler - Net of fees
  • Russell 2000 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 Small Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Small Cap Value
  • Russell 2000 Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/Ebitda Forecasted P/E P/Normalized Earnings**
7.9% 9.6x 1.9x 15.4x 10.4x
3.5% 6.5x 2.0x 16.2x
ROC 5 Year Avg 7.9% 3.5%
Cash Interest Coverage 9.6x 6.5x
Debt/Ebitda 1.9x 2.0x
Forecasted P/E 15.4x 16.2x
P/Normalized Earnings** 10.4x
Period Ending: 09.30.2015 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Small Cap Value
  • Russell 2000 Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) WTD Avg. Annual Turnover
42 $0.2 - $7.3 $2.6 43%
1,308 $0.04 - $4.5 $1.6
# Holdings 42 1,308
Market Cap ($B) Range $0.2 - $7.3 $0.04 - $4.5
Market Cap ($B) WTD Avg. $2.6 $1.6
Annual Turnover 43%
Source: Factset and Russell®

Top 10 Holdings1

RenaissanceRe Holdings Ltd. 4.5%
Fox Factory Holding Corp. 4.0%
Schweitzer-Mauduit International Inc. 3.7%
Winnebago Industries Inc. 3.6%
MoneyGram International Inc. 3.4%
Teleflex Inc. 3.4%
TCF Financial Corp. 3.2%
First Cash FInancial Services Inc. 3.1%
Quanex Building Products Corp. 3.1%
Mednax Inc. 3.0%

Top 10 Holdings1

RenaissanceRe Holdings Ltd. 4.5%
Fox Factory Holding Corp. 4.0%
Schweitzer-Mauduit International Inc. 3.7%
Winnebago Industries Inc. 3.6%
MoneyGram International Inc. 3.4%
Teleflex Inc. 3.4%
TCF Financial Corp. 3.2%
First Cash FInancial Services Inc. 3.1%
Quanex Building Products Corp. 3.1%
Mednax Inc. 3.0%

Sector Weights1

  • C&B Small Cap Value
  • Russell 2000 Value Index
  • Consumer Discretionary

    C&B Small Cap Value
    14.2%
    Russell 2000 Value Index
    10.5%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000 Value Index
    3.2%
  • Energy

    C&B Small Cap Value
    2.6%
    Russell 2000 Value Index
    3.7%
  • Financials

    C&B Small Cap Value
    30.2%
    Russell 2000 Value Index
    43.8%
  • Health Care

    C&B Small Cap Value
    6.3%
    Russell 2000 Value Index
    4.3%
  • Industrials

    C&B Small Cap Value
    22.3%
    Russell 2000 Value Index
    12.4%
  • Information Technology

    C&B Small Cap Value
    10.4%
    Russell 2000 Value Index
    10.5%
  • Materials

    C&B Small Cap Value
    7.2%
    Russell 2000 Value Index
    3.1%
  • Telecommunication Services

    C&B Small Cap Value
    Russell 2000 Value Index
    0.9%
  • Utilities

    C&B Small Cap Value
    1.0%
    Russell 2000 Value Index
    7.4%
  • Cash

    C&B Small Cap Value
    5.7%
    Russell 2000 Value Index
Source: Factset and Russell®

Market Commentary

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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. Equity markets saw their first correction in 46 months – the third-longest stretch since the Great Depression.

Additional Cooke & Bieler Small Cap Value Disclosures