Mid Cap Value Q1 2019


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40 to 50

companies in our fully invested, concentrated portfolio

21

year track record

$600

million Mid Cap Value assets under management as of 3/31/2019

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

Mid Cap Value

Quarter 1 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 Mid Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
13.9% 9.0x 2.7x 12.2x 12.0x
9.2% 6.5x 3.0x 15.8x -
ROC 5 Year Avg 13.9% 9.2%
Cash Interest Coverage 9.0x 6.5x
Debt/EBITDA 2.7x 3.0x
Forecasted P/E** 12.2x 15.8x
P/Normalized Earnings** 12.0x -
Period Ending: 3.31.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
45 0.5 - 42.0 10.5 35%
589 0.6 - 81.5 15.0 -
# Holdings 45 589
Market Cap ($B) Range 0.5 - 42.0 0.6 - 81.5
Market Cap ($B) Wtd Avg 10.5 15.0
Annual Turnover 35% -
Source: Factset and Russell®

Top 10 Holdings1

Colfax 4.0%
Fidelity National Financial 3.7%
Schweitzer-Mauduit International 3.3%
Arrow Electronics 3.2%
Reliance Steel & Aluminum 3.0%
Gildan Activewear 2.8%
Crown Holdings 2.8%
FirstCash 2.7%
AerCap 2.7%
Helen of Troy 2.6%

Top 10 Holdings1

Colfax 4.0%
Fidelity National Financial 3.7%
Schweitzer-Mauduit International 3.3%
Arrow Electronics 3.2%
Reliance Steel & Aluminum 3.0%
Gildan Activewear 2.8%
Crown Holdings 2.8%
FirstCash 2.7%
AerCap 2.7%
Helen of Troy 2.6%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Communication Services

    C&B Mid Cap Value
    2.2%
    Russell Midcap® Value Index
    3.1%
  • Consumer Discretionary

    C&B Mid Cap Value
    11.3%
    Russell Midcap® Value Index
    8.7%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    5.0%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    6.1%
  • Financials

    C&B Mid Cap Value
    22.6%
    Russell Midcap® Value Index
    17.1%
  • Health Care

    C&B Mid Cap Value
    9.8%
    Russell Midcap® Value Index
    7.1%
  • Industrials

    C&B Mid Cap Value
    25.6%
    Russell Midcap® Value Index
    12.1%
  • Information Technology

    C&B Mid Cap Value
    10.9%
    Russell Midcap® Value Index
    8.9%
  • Materials

    C&B Mid Cap Value
    10.8%
    Russell Midcap® Value Index
    6.0%
  • Real Estate

    C&B Mid Cap Value
    2.0%
    Russell Midcap® Value Index
    14.5%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    11.4%
  • Cash

    C&B Mid Cap Value
    4.9%
    Russell Midcap® 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 Midcap® Value Index (RMV) returned 14.37%, with nine of eleven sectors posting double-digit gains. Reflecting the remarkable change in sentiment, sectors and stocks that performed worst during the late 2018 sell-off generally performed best.

Additional Cooke & Bieler Mid Cap Value Disclosures