SMID Cap Value Q1 2019


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40 to 50

companies in our fully invested, concentrated portfolio

15

year track record

$22

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

101%

upside market capture ratio since inception (1/1/04)

93%

downside market capture ratio since inception (1/1/04)

  • 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

SMID Cap Value

Quarter 1 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 SMID Cap Value Performance Disclosures

Quality Characteristics1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.1% 6.9x 3.1x 12.8x 11.7x
7.1% 5.3x 3.4x 16.7x -
ROC 5 Year Avg 12.1% 7.1%
Cash Interest Coverage 6.9x 5.3x
Debt/EBITDA 3.1x 3.4x
Forecasted P/E** 12.8x 16.7x
P/Normalized Earnings** 11.7x -
Period Ending: 3.31.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
46 0.5 - 16.7 5.2 49%
1,723 0.02 - 16.4 4.9 -
# Holdings 46 1,723
Market Cap ($B) Range 0.5 - 16.7 0.02 - 16.4
Market Cap ($B) Wtd Avg 5.2 4.9
Annual Turnover 49% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago Industries 4.1%
Colfax 4.0%
Schweitzer-Mauduit International 3.6%
Arrow Electronics 3.3%
Gildan Activewear 3.2%
Fidelity National Financial 3.2%
Reliance Steel & Aluminum 3.0%
FirstCash 2.8%
AerCap 2.7%
Crown Holdings 2.6%

Top 10 Holdings1

Winnebago Industries 4.1%
Colfax 4.0%
Schweitzer-Mauduit International 3.6%
Arrow Electronics 3.3%
Gildan Activewear 3.2%
Fidelity National Financial 3.2%
Reliance Steel & Aluminum 3.0%
FirstCash 2.8%
AerCap 2.7%
Crown Holdings 2.6%

Sector Weights1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index
  • Communication Services

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.2%
  • Consumer Discretionary

    C&B SMID Cap Value
    14.7%
    Russell 2500™ Value Index
    8.1%
  • Consumer Staples

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.2%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    5.1%
  • Financials

    C&B SMID Cap Value
    19.8%
    Russell 2500™ Value Index
    22.4%
  • Health Care

    C&B SMID Cap Value
    10.9%
    Russell 2500™ Value Index
    5.2%
  • Industrials

    C&B SMID Cap Value
    26.3%
    Russell 2500™ Value Index
    13.6%
  • Information Technology

    C&B SMID Cap Value
    10.2%
    Russell 2500™ Value Index
    9.7%
  • Materials

    C&B SMID Cap Value
    13.2%
    Russell 2500™ Value Index
    6.0%
  • Real Estate

    C&B SMID Cap Value
    1.9%
    Russell 2500™ Value Index
    16.6%
  • Utilities

    C&B SMID Cap Value
    Russell 2500™ Value Index
    6.8%
  • Cash

    C&B SMID Cap Value
    2.9%
    Russell 2500™ 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 2500™ Value Index (R25IV) returned 13.12%, 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 SMID Cap Value Disclosures