Small Cap Value Q4 2017


Download the Factsheet
40 to 60

companies in our fully invested, concentrated portfolio

9

year track record

$885

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

109%

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 4 2017

Equity Composite Performance

  • Cooke & Bieler - Gross of fees
  • Cooke & Bieler - Net of fees
  • Russell 2000® Value Index
Annualized Returns As of 12.31.17 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**
6.1% 8.5x 2.2x 18.2x 13.6x
3.1% 5.4x 3.2x 18.3x -
ROC 5 Year Avg. 6.1% 3.1%
Cash Interest Coverage 8.5x 5.4x
Debt/EBITDA 2.2x 3.2x
Forecasted P/E** 18.2x 18.3x
P/Normalized Earnings** 13.6x -
Period Ending: 12.31.17 * 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
41 0.4 - 7.1 2.9 47%
1387 0.004 - 8.9 2.1 -
# Holdings 41 1387
Market Cap ($B) Range 0.4 - 7.1 0.004 - 8.9
Market Cap ($B) WTD Avg. 2.9 2.1
Annual Turnover 47% -
Source: Factset and Russell®

Top 10 Holdings1

Schweitzer-Mauduit Int’l Inc. 4.5%
PGT Innovations Inc. 4.3%
Quanex Building Products 4.2%
Gildan Activewear Inc. 4.2%
Syneos Health Inc. 3.9%
Steelcase Inc. 3.8%
FirstCash Inc. 3.8%
Helen of Troy Ltd. 3.6%
RenaissanceRe Holdings Ltd. 3.2%
TCF Financial Corp. 3.2%

Top 10 Holdings1

Schweitzer-Mauduit Int’l Inc. 4.5%
PGT Innovations Inc. 4.3%
Quanex Building Products 4.2%
Gildan Activewear Inc. 4.2%
Syneos Health Inc. 3.9%
Steelcase Inc. 3.8%
FirstCash Inc. 3.8%
Helen of Troy Ltd. 3.6%
RenaissanceRe Holdings Ltd. 3.2%
TCF Financial Corp. 3.2%

Sector Weights1

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

    C&B Small Cap Value
    20.8%
    Russell 2000® Value Index
    10.9%
  • Consumer Staples

    C&B Small Cap Value
    1.3%
    Russell 2000® Value Index
    2.8%
  • Energy

    C&B Small Cap Value
    1.3%
    Russell 2000® Value Index
    6.8%
  • Financials

    C&B Small Cap Value
    20.9%
    Russell 2000® Value Index
    30.4%
  • Health Care

    C&B Small Cap Value
    10.0%
    Russell 2000® Value Index
    6.2%
  • Industrials

    C&B Small Cap Value
    25.8%
    Russell 2000® Value Index
    12.1%
  • Information Technology

    C&B Small Cap Value
    4.4%
    Russell 2000® Value Index
    9.0%
  • Materials

    C&B Small Cap Value
    9.5%
    Russell 2000® Value Index
    4.5%
  • Real Estate

    C&B Small Cap Value
    0.6%
    Russell 2000® Value Index
    10.3%
  • Telecommunication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    0.5%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    6.5%
  • Cash

    C&B Small Cap Value
    5.4%
    Russell 2000® 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 2000® Value Index (RUJ) returned 2.05% for the quarter, closing the year up 7.84%.

Additional Cooke & Bieler Small Cap Value Disclosures