Mid Cap Value Q2 2017


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40 to 50

companies in our fully invested, concentrated portfolio

19

year track record

$533

million Mid Cap Value assets under management as of 6/30/2017

101%

upside market capture ratio since 2000

79%

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

Mid Cap Value

Quarter 2 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 Mid Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index*
ROC 5 Year Avg. Cash Interest Coverage Debt/EBITDA Forecast P/E** P/Normalized Earnings**
7.7% 8.7x 2.3x 15.6x 13.8x
4.9% 6.6x 2.9x 17.7x
ROC 5 Year Avg. 7.7% 4.9%
Cash Interest Coverage 8.7x 6.6x
Debt/EBITDA 2.3x 2.9x
Forecast P/E** 15.6x 17.7x
P/Normalized Earnings** 13.8x
Period Ending: 6.30.2017 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) WTD Avg. Annual Turnover
50 0.7 - 34.8 10.5 35%
590 1.8 - 31.1 13.4
# Holdings 50 590
Market Cap ($B) Range 0.7 - 34.8 1.8 - 31.1
Market Cap ($B) WTD Avg. 10.5 13.4
Annual Turnover 35%
Source: Factset and Russell®

Top 10 Holdings1

FirstCash Inc. 3.7%
Gildan Activewear Inc. 3.6%
Fidelity National Financial Inc. 3.1%
Laboratory Corporation of America 3.1%
AerCap Holdings NV 2.9%
Whirlpool Corp. 2.7%
Genpact Ltd. 2.6%
PRA Group Inc. 2.6%
RenaissanceRe Holdings Ltd. 2.6%
State Street Corp. 2.5%

Top 10 Holdings1

FirstCash Inc. 3.7%
Gildan Activewear Inc. 3.6%
Fidelity National Financial Inc. 3.1%
Laboratory Corporation of America 3.1%
AerCap Holdings NV 2.9%
Whirlpool Corp. 2.7%
Genpact Ltd. 2.6%
PRA Group Inc. 2.6%
RenaissanceRe Holdings Ltd. 2.6%
State Street Corp. 2.5%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Consumer Discretionary

    C&B Mid Cap Value
    19.2%
    Russell Midcap® Value Index
    12.0%
  • Consumer Staples

    C&B Mid Cap Value
    1.6%
    Russell Midcap® Value Index
    4.3%
  • Energy

    C&B Mid Cap Value
    1.7%
    Russell Midcap® Value Index
    7.9%
  • Financials

    C&B Mid Cap Value
    23.9%
    Russell Midcap® Value Index
    19.8%
  • Health Care

    C&B Mid Cap Value
    9.9%
    Russell Midcap® Value Index
    7.1%
  • Industrials

    C&B Mid Cap Value
    18.2%
    Russell Midcap® Value Index
    11.3%
  • Information Technology

    C&B Mid Cap Value
    7.9%
    Russell Midcap® Value Index
    6.3%
  • Materials

    C&B Mid Cap Value
    11.4%
    Russell Midcap® Value Index
    5.1%
  • Real Estate

    C&B Mid Cap Value
    1.8%
    Russell Midcap® Value Index
    14.7%
  • Telecommunication Services

    C&B Mid Cap Value
    Russell Midcap® Value Index
    1.0%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    10.6%
  • Cash

    C&B Mid Cap Value
    4.4%
    Russell Midcap® 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 Mid Cap Value strategy generated strong outperformance relative to the Russell Midcap® Value Index (RMV).

Additional Cooke & Bieler Mid Cap Value Disclosures