All Cap Value Q2 2016


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40 to 50

companies in our fully invested, concentrated portfolio

15

year track record

$308

million All Cap Value assets under management as of 6/30/2016

106%

upside market capture ratio since inception (5/1/01)

93%

downside market capture ratio since inception (5/1/01)

  • 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

All Cap Value

Quarter 2 2016

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 06.30.2016 Source: FactSet and Russell® Past performance is not indicative of future results. All investing involves risk, including loss of principal. 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 All Cap Value Performance Disclosures

Quality Characteristics1

  • C&B All Cap Value
  • Russell 3000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E P/Normalized Earnings**
8.5% 10.3x 2.0x 16.9x 13.3x
3.7% 7.1x 2.5x 16.2x
ROC 5 Year Avg 8.5% 3.7%
Cash Interest Coverage 10.3x 7.1x
Debt/EBITDA 2.0x 2.5x
Forecasted P/E 16.9x 16.2x
P/Normalized Earnings** 13.3x
Period Ending: 06.30.2016 * Median ** Weighted Harmonic Mean Source: FactSet and Russell®

Portfolio Attributes1

  • C&B All Cap Value
  • Russell 3000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) WTD Avg Turnover
47 0.6 - 388.7 59.9 30%
2,053 0.1 - 527.6 101.5
# Holdings 47 2,053
Market Cap ($B) Range 0.6 - 388.7 0.1 - 527.6
Market Cap ($B) WTD Avg 59.9 101.5
Turnover 30%
Source: FactSet and Russell®

Top 10 Holdings1

JPMorgan Chase & Co. 3.0%
RenaissanceRe Holdings Ltd. 2.9%
Omnicom Group Inc. 2.8%
Laboratory Corp. of America 2.8%
Wells Fargo & Co. 2.8%
Sally Beauty Holdings, Inc. 2.7%
First Cash Financial Services, Inc. 2.7%
Winnebago Industries, Inc. 2.6%
State Street Corp. 2.6%
Woodward, Inc. 2.6%

Top 10 Holdings1

JPMorgan Chase & Co. 3.0%
RenaissanceRe Holdings Ltd. 2.9%
Omnicom Group Inc. 2.8%
Laboratory Corp. of America 2.8%
Wells Fargo & Co. 2.8%
Sally Beauty Holdings, Inc. 2.7%
First Cash Financial Services, Inc. 2.7%
Winnebago Industries, Inc. 2.6%
State Street Corp. 2.6%
Woodward, Inc. 2.6%

Sector Weights1

  • C&B All Cap Value
  • Russell 3000® Value Index
  • Consumer Discretionary

    C&B All Cap Value
    15.4%
    Russell 3000® Value Index
    5.2%
  • Consumer Staples

    C&B All Cap Value
    5.3%
    Russell 3000® Value Index
    8.7%
  • Energy

    C&B All Cap Value
    3.6%
    Russell 3000® Value Index
    12.9%
  • Financials

    C&B All Cap Value
    29.9%
    Russell 3000® Value Index
    28.7%
  • Health Care

    C&B All Cap Value
    16.0%
    Russell 3000® Value Index
    10.8%
  • Industrials

    C&B All Cap Value
    17.4%
    Russell 3000® Value Index
    10.0%
  • Information Technology

    C&B All Cap Value
    3.0%
    Russell 3000® Value Index
    9.5%
  • Materials

    C&B All Cap Value
    7.6%
    Russell 3000® Value Index
    2.9%
  • Telecommunication Services

    C&B All Cap Value
    Russell 3000® Value Index
    4.0%
  • Utilities

    C&B All Cap Value
    Russell 3000® Value Index
    7.3%
  • Cash

    C&B All Cap Value
    1.7%
    Russell 3000® Value Index
Source: FactSet and Russell®

Strategy Commentary

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The Cooke & Bieler All Cap Value portfolio underperformed the Russell 3000® Value Index (RAV) significantly in the quarter. Relative weakness was broadly dispersed, yet the portfolio’s holdings virtually all performed well on a fundamental basis. However, the generally strong fundamental performance of the portfolio’s holdings was not enough to offset macroeconomic headwinds, particularly falling interest rates.

Additional Cooke & Bieler All Cap Value Disclosures