Concentrated Value Q2 2019


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15 to 25

companies in our fully invested, concentrated portfolio

3

year track record

$3

million Concentrated Value assets under management as of 6/30/2019

143%

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 2 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 6.30.2019 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**
13.4% 7.1x 2.8x 12.3x 11.6x
7.6% 5.6x 3.5x 15.2x -
ROC 5 Year Avg 13.4% 7.6%
Cash Interest Coverage 7.1x 5.6x
Debt/EBITDA 2.8x 3.5x
Forecasted P/E** 12.3x 15.2x
P/Normalized Earnings** 11.6x -
Period Ending: 6.30.2019 * 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 Annual Turnover
20 1.0 - 369.9 64.9 57%
2,069 0.002 - 1,026.9 121.0 -
# Holdings 20 2,069
Market Cap ($B) Range 1.0 - 369.9 0.002 - 1,026.9
Market Cap ($B) Wtd Avg 64.9 121.0
Annual Turnover 57% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago Industries 7.9%
AerCap 7.2%
Intercontinental Exchange 6.1%
Arrow Electronics 5.9%
Chubb 5.7%
Philip Morris International 5.3%
Brookfield Asset Management 5.2%
Allergan 5.1%
Fidelity National Financial 4.9%
Syneos Health 4.7%

Top 10 Holdings1

Winnebago Industries 7.9%
AerCap 7.2%
Intercontinental Exchange 6.1%
Arrow Electronics 5.9%
Chubb 5.7%
Philip Morris International 5.3%
Brookfield Asset Management 5.2%
Allergan 5.1%
Fidelity National Financial 4.9%
Syneos Health 4.7%

Sector Weights1

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

    C&B Concentrated Value
    7.9%
    Russell 3000® Value Index
    6.8%
  • Consumer Discretionary

    C&B Concentrated Value
    7.9%
    Russell 3000® Value Index
    5.5%
  • Consumer Staples

    C&B Concentrated Value
    5.3%
    Russell 3000® Value Index
    7.4%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    8.7%
  • Financials

    C&B Concentrated Value
    29.5%
    Russell 3000® Value Index
    23.0%
  • Health Care

    C&B Concentrated Value
    17.8%
    Russell 3000® Value Index
    14.4%
  • Industrials

    C&B Concentrated Value
    18.1%
    Russell 3000® Value Index
    8.2%
  • Information Technology

    C&B Concentrated Value
    5.9%
    Russell 3000® Value Index
    9.9%
  • Materials

    C&B Concentrated Value
    3.9%
    Russell 3000® Value Index
    4.0%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.5%
  • Utilities

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

    C&B Concentrated Value
    3.7%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

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The second quarter was a bumpy ride for the U.S. stock market. The rally that began late last year continued through April, was upended in May by renewed concerns about the economy and a more protracted trade war, then was revived in June by the Fed’s clear pivot toward monetary easing.

The Russell 3000® Value Index (RAV) returned 3.68%, with every sector except Energy posting gains, led by Financials and Industrials. Returns were strongest for large cap stocks, but otherwise underlying market dynamics lacked discernable themes.

Additional Cooke & Bieler Concentrated Value Disclosures