Large Cap Value Q2 2019

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.

40 to 50

companies in our fully invested, concentrated portfolio

42

year track record

$3.9

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
Returns as of 6.30.2019. Returns greater than one year are annualized. Source: FactSet and Russell® Past performance is not indicative of future results. All investing involves risk, including loss of principal. 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
    7.8%
  • 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®

Additional Cooke & Bieler Large Cap Value Disclosures