Mid Cap Value Q2 2018


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40 to 50

companies in our fully invested, concentrated portfolio

20

year track record

$592

million Mid Cap Value assets under management as of 6/30/2018

100%

upside market capture ratio since 2000

79%

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

Mid Cap Value

Quarter 2 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 Mid Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecast P/E** P/Normalized Earnings**
7.8% 7.7x 2.6x 13.3x 12.5x
5.3% 6.3x 3.2x 16.2x -
ROC 5 Year Avg 7.8% 5.3%
Cash Interest Coverage 7.7x 6.3x
Debt/EBITDA 2.6x 3.2x
Forecast P/E** 13.3x 16.2x
P/Normalized Earnings** 12.5x -
Period Ending: 6.30.2018 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
47 0.6 - 35.6 10.2 39%
596 1.9 - 65.0 14.4 -
# Holdings 47 596
Market Cap ($B) Range 0.6 - 35.6 1.9 - 65.0
Market Cap ($B) Wtd Avg 10.2 14.4
Annual Turnover 39% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy Ltd. 4.2%
Schweitzer-Mauduit Int’l Inc. 3.5%
Crown Holdings Inc. 3.2%
AerCap Holdings NV 3.2%
Syneos Health Inc. 3.1%
Gildan Activewear Inc. 3.1%
Fidelity National Financial 3.0%
FirstCash Inc. 2.9%
TCF Financial Corp. 2.9%
Arrow Electronics Inc. 2.7%

Top 10 Holdings1

Helen of Troy Ltd. 4.2%
Schweitzer-Mauduit Int’l Inc. 3.5%
Crown Holdings Inc. 3.2%
AerCap Holdings NV 3.2%
Syneos Health Inc. 3.1%
Gildan Activewear Inc. 3.1%
Fidelity National Financial 3.0%
FirstCash Inc. 2.9%
TCF Financial Corp. 2.9%
Arrow Electronics Inc. 2.7%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Consumer Discretionary

    C&B Mid Cap Value
    16.6%
    Russell Midcap® Value Index
    11.6%
  • Consumer Staples

    C&B Mid Cap Value
    1.2%
    Russell Midcap® Value Index
    5.1%
  • Energy

    C&B Mid Cap Value
    1.0%
    Russell Midcap® Value Index
    7.7%
  • Financials

    C&B Mid Cap Value
    22.8%
    Russell Midcap® Value Index
    18.1%
  • Health Care

    C&B Mid Cap Value
    10.1%
    Russell Midcap® Value Index
    6.4%
  • Industrials

    C&B Mid Cap Value
    21.4%
    Russell Midcap® Value Index
    11.8%
  • Information Technology

    C&B Mid Cap Value
    10.6%
    Russell Midcap® Value Index
    8.9%
  • Materials

    C&B Mid Cap Value
    12.5%
    Russell Midcap® Value Index
    6.3%
  • Real Estate

    C&B Mid Cap Value
    1.6%
    Russell Midcap® Value Index
    13.3%
  • Telecommunication Services

    C&B Mid Cap Value
    Russell Midcap® Value Index
    0.6%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    10.0%
  • Cash

    C&B Mid Cap Value
    2.2%
    Russell Midcap® Value Index
Source: Factset and Russell®

Market Commentary

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

The Russell Midcap® Value Index (RMV) returned 2.41% for the quarter, with the late-quarter rise in oil prices driving outsized returns among the benchmark’s Energy constituents and the flattening yield curve propelling its Real Estate and Utilities components.

Additional Cooke & Bieler Mid Cap Value Disclosures