Mid Cap Value Q2 2019


Download the Factsheet
40 to 50

companies in our fully invested, concentrated portfolio

21

year track record

$635

million Mid 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

Mid Cap Value

Quarter 2 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 Mid Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
13.5% 10.1x 2.6x 12.7x 12.4x
9.1% 6.3x 3.4x 16.3x -
ROC 5 Year Avg 13.5% 9.1%
Cash Interest Coverage 10.1x 6.3x
Debt/EBITDA 2.6x 3.4x
Forecasted P/E** 12.7x 16.3x
P/Normalized Earnings** 12.4x -
Period Ending: 6.30.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
47 0.6 - 46.7 11.2 35%
587 0.7 - 41.7 15.7 -
# Holdings 47 587
Market Cap ($B) Range 0.6 - 46.7 0.7 - 41.7
Market Cap ($B) Wtd Avg 11.2 15.7
Annual Turnover 35% -
Source: Factset and Russell®

Top 10 Holdings1

Fidelity National Financial 3.3%
Arrow Electronics 3.2%
Reliance Steel & Aluminum 3.0%
AerCap 2.8%
Helen of Troy 2.8%
American Eagle Outfitters 2.8%
Schweitzer-Mauduit International 2.7%
TCF Financial 2.7%
Synchrony Financial 2.6%
Syneos Health 2.5%

Top 10 Holdings1

Fidelity National Financial 3.3%
Arrow Electronics 3.2%
Reliance Steel & Aluminum 3.0%
AerCap 2.8%
Helen of Troy 2.8%
American Eagle Outfitters 2.8%
Schweitzer-Mauduit International 2.7%
TCF Financial 2.7%
Synchrony Financial 2.6%
Syneos Health 2.5%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Communication Services

    C&B Mid Cap Value
    3.3%
    Russell Midcap® Value Index
    3.2%
  • Consumer Discretionary

    C&B Mid Cap Value
    13.7%
    Russell Midcap® Value Index
    8.4%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.7%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    5.4%
  • Financials

    C&B Mid Cap Value
    20.1%
    Russell Midcap® Value Index
    17.8%
  • Health Care

    C&B Mid Cap Value
    10.0%
    Russell Midcap® Value Index
    7.1%
  • Industrials

    C&B Mid Cap Value
    24.0%
    Russell Midcap® Value Index
    12.7%
  • Information Technology

    C&B Mid Cap Value
    12.3%
    Russell Midcap® Value Index
    9.0%
  • Materials

    C&B Mid Cap Value
    10.0%
    Russell Midcap® Value Index
    6.0%
  • Real Estate

    C&B Mid Cap Value
    1.9%
    Russell Midcap® Value Index
    14.0%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    11.4%
  • Cash

    C&B Mid Cap Value
    4.8%
    Russell Midcap® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

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 Midcap® Value Index (RMV) returned 3.19%, with the strongest gains in Industrials and Communication Services, while Energy lagged significantly. Returns were strongest for large cap stocks, but otherwise underlying market dynamics lacked discernable themes.

Additional Cooke & Bieler Mid Cap Value Disclosures