Concentrated Value Q1 2019


Download the Factsheet
15 to 25

companies in our fully invested, concentrated portfolio

3

year track record

$3

million Concentrated Value assets under management as of 3/31/2019

139%

upside market capture ratio since inception (7/1/15)

99%

downside market capture ratio since inception (7/1/15)

  • 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

    • Long-term/low turnover
    • Fully invested/limit on cash
  • Performance

    • Consistent pattern of results
    • Objective: Outperform the benchmark over the longer term

Concentrated Value

Quarter 1 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 3.31.2019 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 Concentrated Value Performance Disclosures

Quality Characteristics1

  • C&B Concentrated Value
  • Russell 3000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
13.5% 7.9x 2.7x 12.2x 11.2x
7.8% 5.9x 3.2x 14.8x -
ROC 5 Year Avg 13.5% 7.8%
Cash Interest Coverage 7.9x 5.9x
Debt/EBITDA 2.7x 3.2x
Forecasted P/E** 12.2x 14.8x
P/Normalized Earnings** 11.2x -
Period Ending: 3.31.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Concentrated Value
  • Russell 3000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Turnover
21 0.8 - 372.2 54.8 47%
2,088 0.02 - 906.1 117.4 -
# Holdings 21 2,088
Market Cap ($B) Range 0.8 - 372.2 0.02 - 906.1
Market Cap ($B) Wtd Avg 54.8 117.4
Turnover 47% -
Source: Factset and Russell®

Top 10 Holdings1

Colfax 7.3%
Winnebago Industries 6.8%
Philip Morris International 6.4%
Chubb 6.2%
Intercontinental Exchange 6.1%
AerCap 6.0%
Brookfield Asset Management 5.4%
State Street 5.3%
Fidelity National Financial 5.3%
Allergan 4.7%

Top 10 Holdings1

Colfax 7.3%
Winnebago Industries 6.8%
Philip Morris International 6.4%
Chubb 6.2%
Intercontinental Exchange 6.1%
AerCap 6.0%
Brookfield Asset Management 5.4%
State Street 5.3%
Fidelity National Financial 5.3%
Allergan 4.7%

Sector Weights1

  • C&B Concentrated Value
  • Russell 3000® Value Index
  • Communication Services

    C&B Concentrated Value
    3.4%
    Russell 3000® Value Index
    6.7%
  • Consumer Discretionary

    C&B Concentrated Value
    9.7%
    Russell 3000® Value Index
    5.6%
  • Consumer Staples

    C&B Concentrated Value
    6.4%
    Russell 3000® Value Index
    7.5%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    9.4%
  • Financials

    C&B Concentrated Value
    32.0%
    Russell 3000® Value Index
    22.1%
  • Health Care

    C&B Concentrated Value
    14.3%
    Russell 3000® Value Index
    14.5%
  • Industrials

    C&B Concentrated Value
    19.0%
    Russell 3000® Value Index
    8.0%
  • Information Technology

    C&B Concentrated Value
    4.2%
    Russell 3000® Value Index
    9.9%
  • Materials

    C&B Concentrated Value
    8.4%
    Russell 3000® Value Index
    4.0%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.7%
  • Utilities

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

    C&B Concentrated Value
    2.6%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

U.S. equities performed extremely well in the first quarter. Emboldened by the Fed’s accommodative pivot, investors shrugged off concerns about the economy, creating an environment that was the polar opposite of last year’s fourth quarter.

The Russell 3000® Value Index (RAV) returned 11.93%, with every sector posting strong gains – though the sectors and stocks that performed worst during the late 2018 sell-off tended to benefit most from this quarter’s profound change in sentiment.

Additional Cooke & Bieler Concentrated Value Disclosures