Large Cap Value Q2 2018


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40 to 50

companies in our fully invested, concentrated portfolio

41

year track record

$3.9

billion Large Cap Value assets under management as of 6/30/2018

101%

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 2 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® Value Index
Annualized Returns As of 6.30.2018 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**
7.4% 7.9x 2.7x 13.5x 13.0x
5.8% 6.8x 3.0x 14.7x -
ROC 5 Year Avg 7.4% 5.8%
Cash Interest Coverage 7.9x 6.8x
Debt/EBITDA 2.7x 3.0x
Forecasted P/E** 13.5x 14.7x
P/Normalized Earnings** 13.0x -
Period Ending: 6.30.2018 * 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
49 1.4 - 460.6 80.2 37%
729 1.9 - 758.3 115.6 -
# Holdings 49 729
Market Cap ($B) Range 1.4 - 460.6 1.9 - 758.3
Market Cap ($B) Wtd Avg 80.2 115.6
Annual Turnover 37% -
Source: Factset and Russell®

Top 10 Holdings1

AerCap Holdings NV 3.2%
Verizon Communications Inc. 3.0%
Allergan PLC 2.9%
Intercontinental Exchange Inc. 2.9%
Crown Holdings Inc. 2.8%
Arrow Electronics Inc. 2.8%
Wells Fargo & Co. 2.7%
Omnicom Group Inc. 2.7%
Gildan Activewear Inc. 2.7%
Snap-on Inc. 2.5%

Top 10 Holdings1

AerCap Holdings NV 3.2%
Verizon Communications Inc. 3.0%
Allergan PLC 2.9%
Intercontinental Exchange Inc. 2.9%
Crown Holdings Inc. 2.8%
Arrow Electronics Inc. 2.8%
Wells Fargo & Co. 2.7%
Omnicom Group Inc. 2.7%
Gildan Activewear Inc. 2.7%
Snap-on Inc. 2.5%

Sector Weights1

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

    C&B Large Cap Value
    11.9%
    Russell 1000® Value Index
    8.3%
  • Consumer Staples

    C&B Large Cap Value
    4.2%
    Russell 1000® Value Index
    7.3%
  • Energy

    C&B Large Cap Value
    4.9%
    Russell 1000® Value Index
    11.1%
  • Financials

    C&B Large Cap Value
    26.9%
    Russell 1000® Value Index
    23.3%
  • Health Care

    C&B Large Cap Value
    12.9%
    Russell 1000® Value Index
    13.9%
  • Industrials

    C&B Large Cap Value
    16.0%
    Russell 1000® Value Index
    7.9%
  • Information Technology

    C&B Large Cap Value
    9.7%
    Russell 1000® Value Index
    9.9%
  • Materials

    C&B Large Cap Value
    6.1%
    Russell 1000® Value Index
    4.1%
  • Real Estate

    C&B Large Cap Value
    1.7%
    Russell 1000® Value Index
    4.9%
  • Telecommunication Services

    C&B Large Cap Value
    3.0%
    Russell 1000® Value Index
    3.6%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    5.7%
  • Cash

    C&B Large Cap Value
    2.8%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equity indices posted positive returns in the second quarter, with small capitalization stocks outperforming larger ones and growth outperforming value among large cap issues.

The Russell 1000® Value Index (RLV) returned 1.18% for the quarter, with the late-quarter rise in oil prices driving outsized returns among the benchmark’s Energy constituents, while the flattening yield curve propelled it Real Estate and Utilities components.

Additional Cooke & Bieler Large Cap Value Disclosures