Large Cap Value Q1 2018


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40 to 50

companies in our fully invested, concentrated portfolio

41

year track record

$3.8

billion Large Cap Value assets under management as of 3/31/2018

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 1 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® Value Index
Annualized Returns As of 3.31.2018 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**
6.8% 8.8x 2.8x 13.9x 13.3x
5.6% 7.2x 3.1x 14.8x -
ROC 5 Year Avg 6.8% 5.6%
Cash Interest Coverage 8.8x 7.2x
Debt/EBITDA 2.8x 3.1x
Forecasted P/E** 13.9x 14.8x
P/Normalized Earnings** 13.3x -
Period Ending: 3.31.2018 * 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
50 1.7 - 492.2 81.5 37%
711 0.6 - 492.2 120.8 -
# Holdings 50 711
Market Cap ($B) Range 1.7 - 492.2 0.6 - 492.2
Market Cap ($B) Wtd Avg 81.5 120.8
Annual Turnover 37% -
Source: Factset and Russell®

Top 10 Holdings1

Allergan PLC 3.2%
AerCap Holdings NV 3.0%
Intercontinental Exchange Inc. 2.8%
Verizon Communications Inc. 2.8%
Wells Fargo & Co. 2.7%
Gildan Activewear Inc. 2.7%
Crown Holdings Inc. 2.6%
Omnicom Group Inc. 2.6%
Arrow Electronics Inc. 2.5%
Johnson Controls Int'l PLC 2.4%

Top 10 Holdings1

Allergan PLC 3.2%
AerCap Holdings NV 3.0%
Intercontinental Exchange Inc. 2.8%
Verizon Communications Inc. 2.8%
Wells Fargo & Co. 2.7%
Gildan Activewear Inc. 2.7%
Crown Holdings Inc. 2.6%
Omnicom Group Inc. 2.6%
Arrow Electronics Inc. 2.5%
Johnson Controls Int'l PLC 2.4%

Sector Weights1

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

    C&B Large Cap Value
    14.8%
    Russell 1000® Value Index
    6.8%
  • Consumer Staples

    C&B Large Cap Value
    4.2%
    Russell 1000® Value Index
    8.1%
  • Energy

    C&B Large Cap Value
    4.8%
    Russell 1000® Value Index
    10.7%
  • Financials

    C&B Large Cap Value
    26.8%
    Russell 1000® Value Index
    27.1%
  • Health Care

    C&B Large Cap Value
    13.7%
    Russell 1000® Value Index
    13.6%
  • Industrials

    C&B Large Cap Value
    13.2%
    Russell 1000® Value Index
    8.2%
  • Information Technology

    C&B Large Cap Value
    8.6%
    Russell 1000® Value Index
    9.3%
  • Materials

    C&B Large Cap Value
    5.8%
    Russell 1000® Value Index
    2.9%
  • Real Estate

    C&B Large Cap Value
    1.6%
    Russell 1000® Value Index
    4.6%
  • Telecommunication Services

    C&B Large Cap Value
    2.8%
    Russell 1000® Value Index
    2.9%
  • Utilities

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

    C&B Large Cap Value
    3.7%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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After delivering nine consecutive quarters of positive returns, U.S. equities, as measured by the S&P 500 Index, delivered the first quarter of negative returns since the third quarter of 2015. Volatility also returned during the first quarter. In 2017, there were eight days in which the S&P 500 advanced or declined more than 1%. In the first quarter of 2018, there were 23.

The Russell 1000® Value Index fell 2.83% in 1Q. Declines, while not dramatic, were broad-based with every sector except Information Technology posting negative returns.

Additional Cooke & Bieler Large Cap Value Disclosures