Small Cap Value Q2 2019


Download the Factsheet
40 to 60

companies in our fully invested, concentrated portfolio

10

year track record

$1.1

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

111%

upside market capture ratio since inception (8/1/08)

78%

downside market capture ratio since inception (8/1/08)

  • 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

Small Cap Value

Quarter 2 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 Small Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Small Cap Value
  • Russell 2000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
11.8% 7.9x 2.9x 13.6x 12.0x
6.7% 4.9x 3.8x 17.2x -
ROC 5 Year Avg 11.8% 6.7%
Cash Interest Coverage 7.9x 4.9x
Debt/EBITDA 2.9x 3.8x
Forecasted P/E** 13.6x 17.2x
P/Normalized Earnings** 12.0x -
Period Ending: 6.30.2019 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Small Cap Value
  • Russell 2000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
45 0.6 - 8.0 3.3 36%
1,347 0.002 - 7.4 2.2 -
# Holdings 45 1,347
Market Cap ($B) Range 0.6 - 8.0 0.002 - 7.4
Market Cap ($B) Wtd Avg 3.3 2.2
Annual Turnover 36% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago Industries 4.7%
PGT Innovations 3.6%
Reliance Steel & Aluminum 3.6%
Helen of Troy 3.5%
Air Lease 3.4%
Schweitzer-Mauduit International 3.3%
Steelcase 3.1%
TCF Financial 3.0%
Plexus 2.9%
Williams-Sonoma 2.8%

Top 10 Holdings1

Winnebago Industries 4.7%
PGT Innovations 3.6%
Reliance Steel & Aluminum 3.6%
Helen of Troy 3.5%
Air Lease 3.4%
Schweitzer-Mauduit International 3.3%
Steelcase 3.1%
TCF Financial 3.0%
Plexus 2.9%
Williams-Sonoma 2.8%

Sector Weights1

  • C&B Small Cap Value
  • Russell 2000® Value Index
  • Communication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    2.9%
  • Consumer Discretionary

    C&B Small Cap Value
    19.7%
    Russell 2000® Value Index
    8.5%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000® Value Index
    2.4%
  • Energy

    C&B Small Cap Value
    1.0%
    Russell 2000® Value Index
    5.1%
  • Financials

    C&B Small Cap Value
    17.7%
    Russell 2000® Value Index
    29.4%
  • Health Care

    C&B Small Cap Value
    9.1%
    Russell 2000® Value Index
    4.0%
  • Industrials

    C&B Small Cap Value
    31.1%
    Russell 2000® Value Index
    11.6%
  • Information Technology

    C&B Small Cap Value
    6.6%
    Russell 2000® Value Index
    11.9%
  • Materials

    C&B Small Cap Value
    9.2%
    Russell 2000® Value Index
    4.2%
  • Real Estate

    C&B Small Cap Value
    1.6%
    Russell 2000® Value Index
    12.3%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    7.6%
  • Cash

    C&B Small Cap Value
    4.0%
    Russell 2000® 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 2000® Value Index (RUJ) returned 1.38%, though only five of 11 economic sectors ended the quarter higher. Investors gravitated toward Financials, Industrials, Information Technology, Real Estate, and Utilities, highlighting their uncertain outlook on the economy and interest rates. Returns were strongest for large cap stocks, but otherwise underlying market dynamics lacked discernable themes.

Additional Cooke & Bieler Small Cap Value Disclosures