Small Cap Value Q1 2019


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40 to 60

companies in our fully invested, concentrated portfolio

10

year track record

$993

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

110%

upside market capture ratio since inception (8/1/08)

78%

downside market capture ratio since inception (8/1/08)

  • 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

Small Cap Value

Quarter 1 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 Small Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Small Cap Value
  • Russell 2000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
10.7% 7.9x 2.7x 13.2x 11.6x
6.8% 5.0x 3.4x 16.9x -
ROC 5 Year Avg 10.7% 6.8%
Cash Interest Coverage 7.9x 5.0x
Debt/EBITDA 2.7x 3.4x
Forecasted P/E** 13.2x 16.9x
P/Normalized Earnings** 11.6x -
Period Ending: 3.31.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Small Cap Value
  • Russell 2000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
43 0.5 - 7.4 3.3 38%
1,366 0.02 - 6.6 2.1 -
# Holdings 43 1,366
Market Cap ($B) Range 0.5 - 7.4 0.02 - 6.6
Market Cap ($B) Wtd Avg 3.3 2.1
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Colfax 4.2%
Winnebago Industries 4.2%
Schweitzer-Mauduit International 4.0%
Gildan Activewear 3.6%
Helen of Troy 3.5%
Reliance Steel & Aluminum 3.3%
Air Lease 3.0%
Plexus 2.9%
PGT Innovations 2.8%
Steelcase 2.8%

Top 10 Holdings1

Colfax 4.2%
Winnebago Industries 4.2%
Schweitzer-Mauduit International 4.0%
Gildan Activewear 3.6%
Helen of Troy 3.5%
Reliance Steel & Aluminum 3.3%
Air Lease 3.0%
Plexus 2.9%
PGT Innovations 2.8%
Steelcase 2.8%

Sector Weights1

  • C&B Small Cap Value
  • Russell 2000® Value Index
  • Communication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    3.2%
  • Consumer Discretionary

    C&B Small Cap Value
    17.3%
    Russell 2000® Value Index
    9.2%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000® Value Index
    2.6%
  • Energy

    C&B Small Cap Value
    1.3%
    Russell 2000® Value Index
    5.7%
  • Financials

    C&B Small Cap Value
    18.5%
    Russell 2000® Value Index
    28.2%
  • Health Care

    C&B Small Cap Value
    9.6%
    Russell 2000® Value Index
    4.3%
  • Industrials

    C&B Small Cap Value
    29.8%
    Russell 2000® Value Index
    11.3%
  • Information Technology

    C&B Small Cap Value
    6.5%
    Russell 2000® Value Index
    11.5%
  • Materials

    C&B Small Cap Value
    9.8%
    Russell 2000® Value Index
    4.3%
  • Real Estate

    C&B Small Cap Value
    2.3%
    Russell 2000® Value Index
    12.4%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    7.3%
  • Cash

    C&B Small Cap Value
    5.0%
    Russell 2000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equities performed extremely well in the first quarter, with small cap stocks off to their best start since 1991 and posting their best overall quarter since Q4 2011.

The Russell 2000® Value Index (RUJ) 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 Small Cap Value Disclosures