Mid Cap Value Q3 2019


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40 to 50

companies in our fully invested, concentrated portfolio

21

year track record

$677

million Mid 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

Mid Cap Value

Quarter 3 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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**
13.4% 8.9x 2.3x 13.4x 12.9x
9.4% 6.6x 3.0x 16.4x -
ROC 5 Year Avg 13.4% 9.4%
Cash Interest Coverage 8.9x 6.6x
Debt/EBITDA 2.3x 3.0x
Forecasted P/E** 13.4x 16.4x
P/Normalized Earnings** 12.9x -
Period Ending: 9.30.2019 * 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
48 1.2 - 46.1 11.4 38%
633 0.4 - 40.9 15.1 -
# Holdings 48 633
Market Cap ($B) Range 1.2 - 46.1 0.4 - 40.9
Market Cap ($B) Wtd Avg 11.4 15.1
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 3.3%
Arrow Electronics 3.2%
Fidelity National Financial 3.1%
American Eagle Outfitters 3.0%
AerCap 2.9%
TCF Financial 2.9%
Colfax 2.9%
Reliance Steel & Aluminum 2.7%
State Street 2.6%
Syneos Health 2.5%

Top 10 Holdings1

Helen of Troy 3.3%
Arrow Electronics 3.2%
Fidelity National Financial 3.1%
American Eagle Outfitters 3.0%
AerCap 2.9%
TCF Financial 2.9%
Colfax 2.9%
Reliance Steel & Aluminum 2.7%
State Street 2.6%
Syneos Health 2.5%

Sector Weights1

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

    C&B Mid Cap Value
    4.4%
    Russell Midcap® Value Index
    3.6%
  • Consumer Discretionary

    C&B Mid Cap Value
    14.7%
    Russell Midcap® Value Index
    8.9%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.6%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    5.5%
  • Financials

    C&B Mid Cap Value
    19.2%
    Russell Midcap® Value Index
    18.9%
  • Health Care

    C&B Mid Cap Value
    10.0%
    Russell Midcap® Value Index
    6.7%
  • Industrials

    C&B Mid Cap Value
    24.9%
    Russell Midcap® Value Index
    11.4%
  • Information Technology

    C&B Mid Cap Value
    12.1%
    Russell Midcap® Value Index
    7.2%
  • Materials

    C&B Mid Cap Value
    8.2%
    Russell Midcap® Value Index
    6.5%
  • Real Estate

    C&B Mid Cap Value
    1.9%
    Russell Midcap® Value Index
    14.7%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    11.8%
  • Cash

    C&B Mid Cap Value
    4.6%
    Russell Midcap® 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 Midcap® Value Index (RMV) generated a 1.22% 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 Mid Cap Value Disclosures