Large Cap Value Q2 2019


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40 to 50

companies in our fully invested, concentrated portfolio

42

year track record

$4.0

billion Large Cap Value assets under management as of 6/30/2019

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 2 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
10.7% 10.2x 2.4x 13.2x 13.3x
9.4% 6.9x 3.3x 15.1x -
ROC 5 Year Avg 10.7% 9.4%
Cash Interest Coverage 10.2x 6.9x
Debt/EBITDA 2.4x 3.3x
Forecasted P/E** 13.2x 15.1x
P/Normalized Earnings** 13.3x -
Period Ending: 6.30.2019 * 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
47 2.4 - 522.9 81.9 38%
722 0.2 - 1,026.9 129.5 -
# Holdings 47 722
Market Cap ($B) Range 2.4 - 522.9 0.2 - 1,026.9
Market Cap ($B) Wtd Avg 81.9 129.5
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.1%
Fidelity National Financial 2.9%
Allergan 2.9%
AerCap 2.8%
Intercontinental Exchange 2.8%
Brookfield Asset Management 2.6%
Synchrony Financial 2.6%
United Parcel Service 2.5%
Eaton 2.5%
Amdocs 2.4%

Top 10 Holdings1

Arrow Electronics 3.1%
Fidelity National Financial 2.9%
Allergan 2.9%
AerCap 2.8%
Intercontinental Exchange 2.8%
Brookfield Asset Management 2.6%
Synchrony Financial 2.6%
United Parcel Service 2.5%
Eaton 2.5%
Amdocs 2.4%

Sector Weights1

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

    C&B Large Cap Value
    5.4%
    Russell 1000® Value Index
    7.1%
  • Consumer Discretionary

    C&B Large Cap Value
    7.2%
    Russell 1000® Value Index
    5.3%
  • Consumer Staples

    C&B Large Cap Value
    1.9%
    Russell 1000® Value Index
    7.9%
  • Energy

    C&B Large Cap Value
    4.7%
    Russell 1000® Value Index
    9.0%
  • Financials

    C&B Large Cap Value
    27.1%
    Russell 1000® Value Index
    22.5%
  • Health Care

    C&B Large Cap Value
    13.3%
    Russell 1000® Value Index
    15.2%
  • Industrials

    C&B Large Cap Value
    17.1%
    Russell 1000® Value Index
    8.0%
  • Information Technology

    C&B Large Cap Value
    10.9%
    Russell 1000® Value Index
    9.7%
  • Materials

    C&B Large Cap Value
    5.5%
    Russell 1000® Value Index
    4.0%
  • Real Estate

    C&B Large Cap Value
    1.9%
    Russell 1000® Value Index
    5.0%
  • Utilities

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

    C&B Large Cap Value
    5.1%
    Russell 1000® 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 1000® Value Index (RLV) returned 3.84%, 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 Large Cap Value Disclosures