Small Cap Value Q2 2018


Download the Factsheet
40 to 60

companies in our fully invested, concentrated portfolio

9

year track record

$978

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

108%

upside market capture ratio since inception (8/1/08)

74%

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 2 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of fees
  • Cooke & Bieler - Net of fees
  • Russell 2000® 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 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**
7.3% 6.6x 2.3x 15.7x 13.1x
3.7% 5.2x 3.4x 19.5x -
ROC 5 Year Avg 7.3% 3.7%
Cash Interest Coverage 6.6x 5.2x
Debt/EBITDA 2.3x 3.4x
Forecasted P/E** 15.7x 19.5x
P/Normalized Earnings** 13.1x -
Period Ending: 6.30.2018 * 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 0.5 - 6.9 3.1 42%
1,364 0.09 - 6.7 2.1 -
# Holdings 41 1,364
Market Cap ($B) Range 0.5 - 6.9 0.09 - 6.7
Market Cap ($B) Wtd Avg 3.1 2.1
Annual Turnover 42% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy Ltd. 4.3%
Schweitzer-Mauduit Int’l Inc. 4.2%
Gildan Activewear Inc. 3.8%
Syneos Health Inc. 3.7%
TCF Financial Corp. 3.3%
Quanex Building Products 3.1%
Steelcase Inc. 3.1%
Umpqua Holdings Corp. 3.1%
Nautilus Inc. 3.0%
Winnebago Industries Inc. 3.0%

Top 10 Holdings1

Helen of Troy Ltd. 4.3%
Schweitzer-Mauduit Int’l Inc. 4.2%
Gildan Activewear Inc. 3.8%
Syneos Health Inc. 3.7%
TCF Financial Corp. 3.3%
Quanex Building Products 3.1%
Steelcase Inc. 3.1%
Umpqua Holdings Corp. 3.1%
Nautilus Inc. 3.0%
Winnebago Industries Inc. 3.0%

Sector Weights1

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

    C&B Small Cap Value
    20.5%
    Russell 2000® Value Index
    11.4%
  • Consumer Staples

    C&B Small Cap Value
    1.1%
    Russell 2000® Value Index
    2.7%
  • Energy

    C&B Small Cap Value
    0.9%
    Russell 2000® Value Index
    7.6%
  • Financials

    C&B Small Cap Value
    19.3%
    Russell 2000® Value Index
    28.3%
  • Health Care

    C&B Small Cap Value
    10.5%
    Russell 2000® Value Index
    4.6%
  • Industrials

    C&B Small Cap Value
    26.8%
    Russell 2000® Value Index
    11.5%
  • Information Technology

    C&B Small Cap Value
    5.1%
    Russell 2000® Value Index
    10.6%
  • Materials

    C&B Small Cap Value
    8.9%
    Russell 2000® Value Index
    4.4%
  • Real Estate

    C&B Small Cap Value
    1.6%
    Russell 2000® Value Index
    12.1%
  • Telecommunication Services

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

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

    C&B Small Cap Value
    5.2%
    Russell 2000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

U.S. equity indices posted positive returns in the second quarter, with small capitalization stocks outperforming larger ones by a meaningful margin and – at least within the small cap universe – value outperforming growth.

The Russell 2000® Value Index (RUJ) returned 8.30% for the quarter, with the late-quarter rise in oil prices driving outsized returns among the benchmark’s Energy constituents and a flattening yield curve propelling REITs.

Additional Cooke & Bieler Small Cap Value Disclosures