Large Cap Value Q4 2017


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40 to 50

companies in our fully invested, concentrated portfolio

41

year track record

$4.0

billion Large Cap Value assets under management as of 12/31/2017

102%

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 4 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
6.4% 9.8x 2.8x 16.8x 15.0x
5.0% 7.4x 3.1x 17.8x -
ROC 5 Year Avg. 6.4% 5.0%
Cash Interest Coverage 9.8x 7.4x
Debt/EBITDA 2.8x 3.1x
Forecasted P/E** 16.8x 17.8x
P/Normalized Earnings** 15.0x -
Period Ending: 12.31.2017 * 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
49 1.8 - 489.0 85.9 36%
713 0.7 - 489.0 126.4 -
# Holdings 49 713
Market Cap ($B) Range 1.8 - 489.0 0.7 - 489.0
Market Cap ($B) WTD Avg. 85.9 126.4
Annual Turnover 36% -
Source: Factset and Russell®

Top 10 Holdings1

AerCap Holdings NV 3.0%
Gildan Activewear Inc. 2.9%
Allergan PLC 2.8%
Omnicom Group Inc. 2.8%
Berkshire Hathaway Inc. 2.7%
Intercontinental Exchange Inc. 2.7%
Snap-on Inc. 2.6%
Wells Fargo & Co. 2.6%
JPMorgan Chase & Co. 2.6%
Twenty-First Century Fox Inc. 2.6%

Top 10 Holdings1

AerCap Holdings NV 3.0%
Gildan Activewear Inc. 2.9%
Allergan PLC 2.8%
Omnicom Group Inc. 2.8%
Berkshire Hathaway Inc. 2.7%
Intercontinental Exchange Inc. 2.7%
Snap-on Inc. 2.6%
Wells Fargo & Co. 2.6%
JPMorgan Chase & Co. 2.6%
Twenty-First Century Fox Inc. 2.6%

Sector Weights1

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

    C&B Large Cap Value
    15.4%
    Russell 1000® Value Index
    6.8%
  • Consumer Staples

    C&B Large Cap Value
    3.9%
    Russell 1000® Value Index
    8.6%
  • Energy

    C&B Large Cap Value
    5.6%
    Russell 1000® Value Index
    11.0%
  • Financials

    C&B Large Cap Value
    27.7%
    Russell 1000® Value Index
    26.6%
  • Health Care

    C&B Large Cap Value
    13.5%
    Russell 1000® Value Index
    13.5%
  • Industrials

    C&B Large Cap Value
    13.4%
    Russell 1000® Value Index
    8.4%
  • Information Technology

    C&B Large Cap Value
    7.3%
    Russell 1000® Value Index
    8.5%
  • Materials

    C&B Large Cap Value
    5.0%
    Russell 1000® Value Index
    3.0%
  • Real Estate

    C&B Large Cap Value
    1.4%
    Russell 1000® Value Index
    4.7%
  • Telecommunication Services

    C&B Large Cap Value
    1.5%
    Russell 1000® Value Index
    3.0%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    5.9%
  • Cash

    C&B Large Cap Value
    5.0%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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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 1000® Value Index (RLV) returned 5.33% for the quarter, closing the year up 13.66%. 

Additional Cooke & Bieler Large Cap Value Disclosures