Large Cap Value Q4 2018


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40 to 50

companies in our fully invested, concentrated portfolio

41

year track record

$3.4

billion Large Cap Value assets under management as of 12/31/2018

101%

upside market capture ratio since 2000

82%

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 4 2018

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
10.5% 9.5x 2.4x 11.3x 11.2x
9.6% 6.8x 2.9x 13.4x -
ROC 5 Year Avg 10.5% 9.6%
Cash Interest Coverage 9.5x 6.8x
Debt/EBITDA 2.4x 2.9x
Forecasted P/E** 11.3x 13.4x
P/Normalized Earnings** 11.2x -
Period Ending: 12.31.2018 * 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
48 1.4 - 503.0 69.4 30%
725 0.5 - 780.1 118.0 -
# Holdings 48 725
Market Cap ($B) Range 1.4 - 503.0 0.5 - 780.1
Market Cap ($B) Wtd Avg 69.4 118.0
Annual Turnover 30% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.3%
Chubb 3.0%
State Street 2.9%
Gildan Activewear 2.9%
Omnicom Group 2.9%
Fidelity National Financial 2.7%
Crown Holdings 2.7%
AerCap Holdings 2.6%
Verizon Communications 2.6%
Brookfield Asset Management 2.6%

Top 10 Holdings1

Arrow Electronics 3.3%
Chubb 3.0%
State Street 2.9%
Gildan Activewear 2.9%
Omnicom Group 2.9%
Fidelity National Financial 2.7%
Crown Holdings 2.7%
AerCap Holdings 2.6%
Verizon Communications 2.6%
Brookfield Asset Management 2.6%

Sector Weights1

  • C&B Large Cap Value
  • Russell 1000® Value Index
  • Communication Services

    C&B Large Cap Value
    5.5%
    Russell 1000® Value Index
    7.3%
  • Consumer Discretionary

    C&B Large Cap Value
    8.2%
    Russell 1000® Value Index
    5.2%
  • Consumer Staples

    C&B Large Cap Value
    3.3%
    Russell 1000® Value Index
    7.8%
  • Energy

    C&B Large Cap Value
    5.4%
    Russell 1000® Value Index
    9.3%
  • Financials

    C&B Large Cap Value
    28.6%
    Russell 1000® Value Index
    22.5%
  • Health Care

    C&B Large Cap Value
    11.8%
    Russell 1000® Value Index
    15.7%
  • Industrials

    C&B Large Cap Value
    16.4%
    Russell 1000® Value Index
    7.4%
  • Information Technology

    C&B Large Cap Value
    12.0%
    Russell 1000® Value Index
    9.3%
  • 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%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    6.5%
  • Cash

    C&B Large Cap Value
    0.9%
    Russell 1000® 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 1000® Value Index (RLV) declined 11.72% in the fourth quarter. As tends to be the case in sudden, major pullbacks, selling pressure was widespread and largely indiscriminate.

Additional Cooke & Bieler Large Cap Value Disclosures