Large Cap Value Q1 2019


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40 to 50

companies in our fully invested, concentrated portfolio

42

year track record

$3.8

billion Large Cap Value assets under management as of 3/31/2019

102%

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 1 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
10.6% 9.7x 2.5x 12.7x 12.7x
9.6% 7.0x 2.9x 14.7x -
ROC 5 Year Avg 10.6% 9.6%
Cash Interest Coverage 9.7x 7.0x
Debt/EBITDA 2.5x 2.9x
Forecasted P/E** 12.7x 14.7x
P/Normalized Earnings** 12.7x -
Period Ending: 3.31.2019 * 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 1.9 - 494.5 76.3 33%
722 0.6 - 906.1 125.9 -
# Holdings 48 722
Market Cap ($B) Range 1.9 - 494.5 0.6 - 906.1
Market Cap ($B) Wtd Avg 76.3 125.9
Annual Turnover 33% -
Source: Factset and Russell®

Top 10 Holdings1

Fidelity National Financial 3.2%
Colfax 3.2%
Arrow Electronics 3.1%
Chubb 2.9%
Brookfield Asset Management 2.7%
AerCap 2.7%
Exxon Mobil 2.6%
Verizon Communications 2.6%
Eaton 2.6%
Crown Holdings 2.6%

Top 10 Holdings1

Fidelity National Financial 3.2%
Colfax 3.2%
Arrow Electronics 3.1%
Chubb 2.9%
Brookfield Asset Management 2.7%
AerCap 2.7%
Exxon Mobil 2.6%
Verizon Communications 2.6%
Eaton 2.6%
Crown Holdings 2.6%

Sector Weights1

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

    C&B Large Cap Value
    4.7%
    Russell 1000® Value Index
    6.9%
  • Consumer Discretionary

    C&B Large Cap Value
    8.2%
    Russell 1000® Value Index
    5.3%
  • Consumer Staples

    C&B Large Cap Value
    4.2%
    Russell 1000® Value Index
    7.9%
  • Energy

    C&B Large Cap Value
    5.5%
    Russell 1000® Value Index
    9.7%
  • Financials

    C&B Large Cap Value
    28.6%
    Russell 1000® Value Index
    21.7%
  • Health Care

    C&B Large Cap Value
    11.7%
    Russell 1000® Value Index
    15.3%
  • Industrials

    C&B Large Cap Value
    16.6%
    Russell 1000® Value Index
    7.8%
  • Information Technology

    C&B Large Cap Value
    9.5%
    Russell 1000® Value Index
    9.8%
  • Materials

    C&B Large Cap Value
    6.0%
    Russell 1000® Value Index
    4.0%
  • Real Estate

    C&B Large Cap Value
    1.9%
    Russell 1000® Value Index
    5.2%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    6.4%
  • Cash

    C&B Large Cap Value
    3.1%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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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 1000® Value Index (RLV) returned 11.93%, with every sector posting strong gains – though economically sensitive sectors tended to benefit most from this quarter’s profound change in sentiment.

Additional Cooke & Bieler Large Cap Value Disclosures