Large Cap Value Q2 2017


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40 to 50

companies in our fully invested, concentrated portfolio

41

year track record

$3.9

billion Large Cap Value assets under management as of 6/30/2017

103%

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 2 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® Value Index
Annualized Returns As of 6.30.2017 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**
6.9% 9.7x 2.4x 16.6x 15.2x
5.3% 6.9x 2.8x 16.6x -
ROC 5 Year Avg. 6.9% 5.3%
Cash Interest Coverage 9.7x 6.9x
Debt/EBITDA 2.4x 2.8x
Forecasted P/E** 16.6x 16.6x
P/Normalized Earnings** 15.2x -
Period Ending: 6.30.2017 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Large Cap Value
  • Russell 1000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) WTD Avg. Annual Turnover
50 1.9 - 417.8 76.3 31%
719 1.8 - 418.3 114.4
# Holdings 50 719
Market Cap ($B) Range 1.9 - 417.8 1.8 - 418.3
Market Cap ($B) WTD Avg. 76.3 114.4
Annual Turnover 31%
Source: Factset and Russell®

Top 10 Holdings1

Laboratory Corp. of America 3.2%
Fidelity National Financial Inc. 3.1%
Gildan Activewear Inc. 3.0%
AerCap Holdings NV 2.9%
State Street Corp. 2.5%
Axalta Coating Systems Ltd. 2.5%
Abbott Laboratories 2.5%
Chubb Ltd. 2.5%
Wells Fargo & Co. 2.5%
JPMorgan Chase & Co. 2.5%

Top 10 Holdings1

Laboratory Corp. of America 3.2%
Fidelity National Financial Inc. 3.1%
Gildan Activewear Inc. 3.0%
AerCap Holdings NV 2.9%
State Street Corp. 2.5%
Axalta Coating Systems Ltd. 2.5%
Abbott Laboratories 2.5%
Chubb Ltd. 2.5%
Wells Fargo & Co. 2.5%
JPMorgan Chase & Co. 2.5%

Sector Weights1

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

    C&B Large Cap Value
    15.1%
    Russell 1000® Value Index
    6.9%
  • Consumer Staples

    C&B Large Cap Value
    5.5%
    Russell 1000® Value Index
    9.2%
  • Energy

    C&B Large Cap Value
    6.3%
    Russell 1000® Value Index
    10.5%
  • Financials

    C&B Large Cap Value
    27.4%
    Russell 1000® Value Index
    25.5%
  • Health Care

    C&B Large Cap Value
    14.9%
    Russell 1000® Value Index
    14.2%
  • Industrials

    C&B Large Cap Value
    12.4%
    Russell 1000® Value Index
    8.7%
  • Information Technology

    C&B Large Cap Value
    5.3%
    Russell 1000® Value Index
    8.0%
  • Materials

    C&B Large Cap Value
    6.9%
    Russell 1000® Value Index
    2.7%
  • Real Estate

    C&B Large Cap Value
    1.8%
    Russell 1000® Value Index
    5.0%
  • Telecommunication Services

    C&B Large Cap Value
    Russell 1000® Value Index
    3.1%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    6.1%
  • Cash

    C&B Large Cap Value
    4.3%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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Investors shrugged off ongoing drama on the political stage both here and abroad along with continued Fed tightening to deliver a quiet second quarter for equities. The quarter was also a profitable one for equity investors, with gains across most major indices. The Cooke & Bieler Large Cap Value strategy generated strong outperformance relative to the Russell 1000® Value Index (RLV).

Additional Cooke & Bieler Large Cap Value Disclosures