All Cap Value Q4 2018


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40 to 50

companies in our fully invested, concentrated portfolio

17

year track record

$291

million All Cap Value assets under management as of 12/31/2018

108%

upside market capture ratio since inception (5/1/01)

95%

downside market capture ratio since inception (5/1/01)

  • 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

All Cap Value

Quarter 4 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 12.31.2018 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 All Cap Value Performance Disclosures

Quality Characteristics1

  • C&B All Cap Value
  • Russell 3000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
13.3% 10.2x 2.4x 11.5x 10.7x
7.8% 6.0x 3.1x 13.6x -
ROC 5 Year Avg 13.3% 7.8%
Cash Interest Coverage 10.2x 6.0x
Debt/EBITDA 2.4x 3.1x
Forecasted P/E** 11.5x 13.6x
P/Normalized Earnings** 10.7x -
Period Ending: 12.31.2018 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B All Cap Value
  • Russell 3000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Turnover
49 0.5 - 503.0 62.4 36%
2,112 0.03 - 780.1 110.0 -
# Holdings 49 2,112
Market Cap ($B) Range 0.5 - 503.0 0.03 - 780.1
Market Cap ($B) Wtd Avg 62.4 110.0
Turnover 36% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.3%
Gildan Activewear 3.3%
Chubb 3.0%
Crown Holdings 2.7%
Fidelity National Financial 2.7%
Verizon Communications 2.6%
Winnebago Industries 2.6%
Omnicom Group 2.5%
Brookfield Asset Management 2.5%
AerCap Holdings 2.5%

Top 10 Holdings1

Arrow Electronics 3.3%
Gildan Activewear 3.3%
Chubb 3.0%
Crown Holdings 2.7%
Fidelity National Financial 2.7%
Verizon Communications 2.6%
Winnebago Industries 2.6%
Omnicom Group 2.5%
Brookfield Asset Management 2.5%
AerCap Holdings 2.5%

Sector Weights1

  • C&B All Cap Value
  • Russell 3000® Value Index
  • Communication Services

    C&B All Cap Value
    5.2%
    Russell 3000® Value Index
    7.0%
  • Consumer Discretionary

    C&B All Cap Value
    10.8%
    Russell 3000® Value Index
    5.5%
  • Consumer Staples

    C&B All Cap Value
    2.8%
    Russell 3000® Value Index
    7.5%
  • Energy

    C&B All Cap Value
    3.7%
    Russell 3000® Value Index
    9.0%
  • Financials

    C&B All Cap Value
    26.4%
    Russell 3000® Value Index
    23.0%
  • Health Care

    C&B All Cap Value
    10.6%
    Russell 3000® Value Index
    15.0%
  • Industrials

    C&B All Cap Value
    20.2%
    Russell 3000® Value Index
    7.7%
  • Information Technology

    C&B All Cap Value
    11.2%
    Russell 3000® Value Index
    9.4%
  • Materials

    C&B All Cap Value
    6.7%
    Russell 3000® Value Index
    4.1%
  • Real Estate

    C&B All Cap Value
    Russell 3000® Value Index
    5.4%
  • Utilities

    C&B All Cap Value
    Russell 3000® Value Index
    6.5%
  • Cash

    C&B All Cap Value
    2.5%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equities performed poorly in the fourth quarter. What began as a modest pullback devolved into a market rout in December. In the end, it was the worst fourth quarter since 2008.

The Russell 3000® Value Index (RAV) declined 12.24% in the fourth quarter. As tends to be the case in sudden, major pullbacks, selling pressure was widespread and largely indiscriminate.

Additional Cooke & Bieler All Cap Value Disclosures