Large Cap Value Q3 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 9/30/2019

103%

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 3 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
11.7% 10.4x 2.4x 13.5x 13.3x
9.7% 7.1x 2.9x 15.3x -
ROC 5 Year Avg 11.7% 9.7%
Cash Interest Coverage 10.4x 7.1x
Debt/EBITDA 2.4x 2.9x
Forecasted P/E** 13.5x 15.3x
P/Normalized Earnings** 13.3x -
Period Ending: 9.30.2019 * 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
48 3.4 - 512.0 82.9 40%
766 0.4 - 512.0 121.1 -
# Holdings 48 766
Market Cap ($B) Range 3.4 - 512.0 0.4 - 512.0
Market Cap ($B) Wtd Avg 82.9 121.1
Annual Turnover 40% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.2%
AerCap 2.9%
Brookfield Asset Management 2.8%
State Street 2.8%
Fidelity National Financial 2.6%
Wells Fargo 2.6%
JP Morgan Chase 2.5%
Colfax 2.5%
Chubb 2.5%
Synchrony Financial 2.5%

Top 10 Holdings1

Arrow Electronics 3.2%
AerCap 2.9%
Brookfield Asset Management 2.8%
State Street 2.8%
Fidelity National Financial 2.6%
Wells Fargo 2.6%
JP Morgan Chase 2.5%
Colfax 2.5%
Chubb 2.5%
Synchrony Financial 2.5%

Sector Weights1

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

    C&B Large Cap Value
    6.3%
    Russell 1000® Value Index
    8.2%
  • Consumer Discretionary

    C&B Large Cap Value
    7.8%
    Russell 1000® Value Index
    6.1%
  • Consumer Staples

    C&B Large Cap Value
    1.8%
    Russell 1000® Value Index
    9.2%
  • Energy

    C&B Large Cap Value
    3.2%
    Russell 1000® Value Index
    8.4%
  • Financials

    C&B Large Cap Value
    29.0%
    Russell 1000® Value Index
    23.6%
  • Health Care

    C&B Large Cap Value
    12.9%
    Russell 1000® Value Index
    12.4%
  • Industrials

    C&B Large Cap Value
    17.4%
    Russell 1000® Value Index
    9.4%
  • Information Technology

    C&B Large Cap Value
    10.2%
    Russell 1000® Value Index
    6.0%
  • Materials

    C&B Large Cap Value
    5.0%
    Russell 1000® Value Index
    4.3%
  • Real Estate

    C&B Large Cap Value
    1.9%
    Russell 1000® Value Index
    5.5%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    7.0%
  • Cash

    C&B Large Cap Value
    4.5%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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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 1000® Value Index (RLV) generated a 1.36% 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 Large Cap Value Disclosures