Concentrated Value Q3 2019


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15 to 25

companies in our fully invested, concentrated portfolio

4

year track record

$8

million CV assets under management as of 9/30/2019

146%

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 3 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 9.30.2019 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 2.7x 13.1x 11.9x
7.8% 5.7x 3.1x 15.6x -
ROC 5 Year Avg 13.4% 7.8%
Cash Interest Coverage 7.1x 5.7x
Debt/EBITDA 2.7x 3.1x
Forecasted P/E** 13.1x 15.6x
P/Normalized Earnings** 11.9x -
Period Ending: 9.30.2019 * 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
21 1.0 - 341.8 60.1 57%
2,168 0.003 - 512.0 113.3 -
# Holdings 21 2,168
Market Cap ($B) Range 1.0 - 341.8 0.003 - 512.0
Market Cap ($B) Wtd Avg 60.1 113.3
Annual Turnover 57% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago Industries 7.6%
AerCap 7.3%
Chubb 6.0%
Arrow Electronics 5.9%
Brookfield Asset Management 5.6%
Colfax 5.3%
Fidelity National Financial 5.2%
Philip Morris International 5.0%
Syneos Health 4.7%
UnitedHealth 4.7%

Top 10 Holdings1

Winnebago Industries 7.6%
AerCap 7.3%
Chubb 6.0%
Arrow Electronics 5.9%
Brookfield Asset Management 5.6%
Colfax 5.3%
Fidelity National Financial 5.2%
Philip Morris International 5.0%
Syneos Health 4.7%
UnitedHealth 4.7%

Sector Weights1

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

    C&B Concentrated Value
    7.7%
    Russell 3000® Value Index
    7.8%
  • Consumer Discretionary

    C&B Concentrated Value
    11.3%
    Russell 3000® Value Index
    6.3%
  • Consumer Staples

    C&B Concentrated Value
    5.0%
    Russell 3000® Value Index
    8.7%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    8.2%
  • Financials

    C&B Concentrated Value
    29.4%
    Russell 3000® Value Index
    24.0%
  • Health Care

    C&B Concentrated Value
    12.5%
    Russell 3000® Value Index
    11.9%
  • Industrials

    C&B Concentrated Value
    22.2%
    Russell 3000® Value Index
    9.6%
  • Information Technology

    C&B Concentrated Value
    5.9%
    Russell 3000® Value Index
    6.2%
  • Materials

    C&B Concentrated Value
    2.8%
    Russell 3000® Value Index
    4.3%
  • Real Estate

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

    C&B Concentrated Value
    Russell 3000® Value Index
    7.0%
  • Cash

    C&B Concentrated Value
    3.0%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

Though investors seem outwardly skittish, the third quarter’s procession of headlines – each one conceivably unsettling enough to derail this longest-ever bull market – came and went with fairly little consequence.

The Russell 3000® Value Index (RAV) generated a 1.23% return, despite a major disruption in the global oil supply, a prolonged trade dispute between the world’s largest economies, renewed and amplified appeals for presidential impeachment, and turmoil in the repo market. But much like last quarter – indeed much like the last 15 years – Q3 felt more tempestuous than its point-to-point return would indicate and revealed new opportunities for patient investors.

Additional Cooke & Bieler Concentrated Value Disclosures