Small Cap Value Q2 2017


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40 to 60

companies in our fully invested, concentrated portfolio

9

year track record

$720

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

108%

upside market capture ratio since inception (8/1/08)

73%

downside market capture ratio since inception (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 2 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of fees
  • Cooke & Bieler - Net of fees
  • Russell 2000® Value Index
Annualized Returns As of 6.30.17 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**
6.3% 8.6x 2.2x 16.5x 13.1x
3.4% 6.1x 2.6x 17.4x
ROC 5 Year Avg. 6.3% 3.4%
Cash Interest Coverage 8.6x 6.1x
Debt/EBITDA 2.2x 2.6x
Forecasted P/E** 16.5x 17.4x
P/Normalized Earnings** 13.1x
Period Ending: 6.30.17 * 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
40 0.4 - 7.0 3.0 47%
1,399 0.09 - 4.8 1.8
# Holdings 40 1,399
Market Cap ($B) Range 0.4 - 7.0 0.09 - 4.8
Market Cap ($B) WTD Avg. 3.0 1.8
Annual Turnover 47%
Source: Factset and Russell®

Top 10 Holdings1

PGT Innovations Inc. 4.6%
FirstCash Inc. 4.5%
Gildan Activewear Inc. 4.4%
Quanex Building Products Corp. 4.2%
Winnebago Industries Inc. 4.2%
Schweitzer-Mauduit International Inc. 3.7%
Hill-Rom Holdings Inc. 3.4%
RenaissanceRe Holdings Ltd. 3.2%
Steelcase Inc. 3.2%
Mednax Inc. 3.1%

Top 10 Holdings1

PGT Innovations Inc. 4.6%
FirstCash Inc. 4.5%
Gildan Activewear Inc. 4.4%
Quanex Building Products Corp. 4.2%
Winnebago Industries Inc. 4.2%
Schweitzer-Mauduit International Inc. 3.7%
Hill-Rom Holdings Inc. 3.4%
RenaissanceRe Holdings Ltd. 3.2%
Steelcase Inc. 3.2%
Mednax Inc. 3.1%

Sector Weights1

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

    C&B Small Cap Value
    22.6%
    Russell 2000® Value Index
    10.6%
  • Consumer Staples

    C&B Small Cap Value
    2.5%
    Russell 2000® Value Index
    2.8%
  • Energy

    C&B Small Cap Value
    2.0%
    Russell 2000® Value Index
    5.3%
  • Financials

    C&B Small Cap Value
    21.6%
    Russell 2000® Value Index
    30.7%
  • Health Care

    C&B Small Cap Value
    9.0%
    Russell 2000® Value Index
    5.6%
  • Industrials

    C&B Small Cap Value
    24.6%
    Russell 2000® Value Index
    12.3%
  • Information Technology

    C&B Small Cap Value
    3.6%
    Russell 2000® Value Index
    9.5%
  • Materials

    C&B Small Cap Value
    8.5%
    Russell 2000® Value Index
    4.3%
  • Real Estate

    C&B Small Cap Value
    1.2%
    Russell 2000® Value Index
    11.6%
  • Telecommunication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    0.7%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    6.7%
  • Cash

    C&B Small Cap Value
    4.4%
    Russell 2000® 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 Small Cap Value strategy generated strong outperformance relative to the Russell 2000® Value Index (RUJ).

Additional Cooke & Bieler Small Cap Value Disclosures