All Cap Value Q4 2017


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40 to 50

companies in our fully invested, concentrated portfolio

16

year track record

$365

million All Cap Value assets under management as of 12/31/2017

108%

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 4 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 12.31.2017 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 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**
6.4% 10.2x 2.7x 17.1x 14.4x
3.8% 6.4x 3.1x 17.8x -
ROC 5 Year Avg. 6.4% 3.8%
Cash Interest Coverage 10.2x 6.4x
Debt/EBITDA 2.7x 3.1x
Forecasted P/E** 17.1x 17.8x
P/Normalized Earnings** 14.4x -
Period Ending: 12.31.2017 * 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
50 0.8 - 489.0 73.5 31%
2,100 0.004 - 489.0 117.2 -
# Holdings 50 2,100
Market Cap ($B) Range 0.8 - 489.0 0.004 - 489.0
Market Cap ($B) WTD Avg. 73.5 117.2
Turnover 31% -
Source: Factset and Russell®

Top 10 Holdings1

FirstCash Inc. 3.4%
Schweitzer-Mauduit Int’l Inc. 3.2%
AerCap Holdings NV 2.9%
Wells Fargo & Co. 2.7%
Steelcase Inc. 2.7%
Twenty-First Century Fox Inc. 2.7%
Gildan Activewear Inc. 2.7%
Berkshire Hathaway Inc. 2.5%
Omnicom Group Inc. 2.4%
Whirlpool Corp. 2.4%

Top 10 Holdings1

FirstCash Inc. 3.4%
Schweitzer-Mauduit Int’l Inc. 3.2%
AerCap Holdings NV 2.9%
Wells Fargo & Co. 2.7%
Steelcase Inc. 2.7%
Twenty-First Century Fox Inc. 2.7%
Gildan Activewear Inc. 2.7%
Berkshire Hathaway Inc. 2.5%
Omnicom Group Inc. 2.4%
Whirlpool Corp. 2.4%

Sector Weights1

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

    C&B All Cap Value
    17.3%
    Russell 3000® Value Index
    7.1%
  • Consumer Staples

    C&B All Cap Value
    3.7%
    Russell 3000® Value Index
    8.2%
  • Energy

    C&B All Cap Value
    3.9%
    Russell 3000® Value Index
    10.7%
  • Financials

    C&B All Cap Value
    30.4%
    Russell 3000® Value Index
    26.9%
  • Health Care

    C&B All Cap Value
    14.0%
    Russell 3000® Value Index
    12.9%
  • Industrials

    C&B All Cap Value
    17.0%
    Russell 3000® Value Index
    8.6%
  • Information Technology

    C&B All Cap Value
    5.1%
    Russell 3000® Value Index
    8.5%
  • Materials

    C&B All Cap Value
    6.3%
    Russell 3000® Value Index
    3.1%
  • Real Estate

    C&B All Cap Value
    Russell 3000® Value Index
    5.1%
  • Telecommunication Services

    C&B All Cap Value
    Russell 3000® Value Index
    2.8%
  • Utilities

    C&B All Cap Value
    Russell 3000® Value Index
    6.0%
  • Cash

    C&B All Cap Value
    2.4%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

After posting robust, steady gains in the first three quarters of 2017, U.S. equities delivered another quarter of positive returns – the ninth consecutive one for the market as measured by the S&P 500 Index. Investors responded enthusiastically as the prospect of tax reform materialized, increasing the likelihood of continued earnings growth fueled by a lower corporate tax rate.

The major Russell U.S. equity indices ended Q4 and 2017 in positive territory as large cap stocks outperformed small cap stocks, reversing a trend that dominated in 2016. The Russell 3000® Value Index (RUJ) returned 5.08% for the quarter, closing the year up 13.19%.

Additional Cooke & Bieler All Cap Value Disclosures