Concentrated Value Q4 2019


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15 to 25

companies in our fully invested, concentrated portfolio

4

year track record

$10

million CV assets under management as of 12/31/2019

148%

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 4 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 12.31.2019 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**
13.0% 9.5x 2.8x 14.9x 13.6x
7.7% 5.8x 3.2x 17.0x -
ROC 5 Year Avg 13.0% 7.7%
Cash Interest Coverage 9.5x 5.8x
Debt/EBITDA 2.8x 3.2x
Forecasted P/E** 14.9x 17.0x
P/Normalized Earnings** 13.6x -
Period Ending: 12.31.2019 * 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
20 0.9 - 383.8 64.0 61%
2,166 0.03 - 554.4 122.1 -
# Holdings 20 2,166
Market Cap ($B) Range 0.9 - 383.8 0.03 - 554.4
Market Cap ($B) Wtd Avg 64.0 122.1
Annual Turnover 61% -
Source: Factset and Russell®

Top 10 Holdings1

AerCap Holdings 7.4%
Gildan Activewear 6.3%
Arrow Electronics 6.1%
Progressive 6.1%
Brookfield Asset Management 5.9%
Philip Morris International 5.9%
Syneos Health 5.8%
UnitedHealth Group 5.7%
Chubb 5.2%
Winnebago Industries 5.0%

Top 10 Holdings1

AerCap Holdings 7.4%
Gildan Activewear 6.3%
Arrow Electronics 6.1%
Progressive 6.1%
Brookfield Asset Management 5.9%
Philip Morris International 5.9%
Syneos Health 5.8%
UnitedHealth Group 5.7%
Chubb 5.2%
Winnebago Industries 5.0%

Sector Weights1

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

    C&B Concentrated Value
    3.4%
    Russell 3000® Value Index
    7.8%
  • Consumer Discretionary

    C&B Concentrated Value
    11.3%
    Russell 3000® Value Index
    6.1%
  • Consumer Staples

    C&B Concentrated Value
    5.9%
    Russell 3000® Value Index
    8.5%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    8.1%
  • Financials

    C&B Concentrated Value
    33.7%
    Russell 3000® Value Index
    24.3%
  • Health Care

    C&B Concentrated Value
    17.9%
    Russell 3000® Value Index
    12.5%
  • Industrials

    C&B Concentrated Value
    19.3%
    Russell 3000® Value Index
    9.9%
  • Information Technology

    C&B Concentrated Value
    6.1%
    Russell 3000® Value Index
    6.5%
  • Materials

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

    C&B Concentrated Value
    Russell 3000® Value Index
    5.6%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    6.6%
  • Cash

    C&B Concentrated Value
    2.5%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equity markets ended the year on a very strong note, with indices reaching record highs. Investor optimism was buoyed by easing trade tensions and indications of diminishing recession risks.

Against this backdrop, the Russell 3000® Value Index (RAV) generated a 7.48% return. Notably, growth outperformed value and bond-proxy sectors underperformed the broader market. For the full year period, US equity indices – soothed by the Fed’s accommodative monetary policy pivot – were up broadly and significantly, posting returns upwards of 20%, with particular strength in Technology.

Additional Cooke & Bieler Concentrated Value Disclosures