Large Cap Value Q4 2019


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40 to 50

companies in our fully invested, concentrated portfolio

42

year track record

$3.8

billion Large Cap Value assets under management as of 12/31/2019

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 4 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
11.2% 9.9x 2.4x 14.6x 14.4x
9.6% 6.9x 3.0x 16.7x -
ROC 5 Year Avg 11.2% 9.6%
Cash Interest Coverage 9.9x 6.9x
Debt/EBITDA 2.4x 3.0x
Forecasted P/E** 14.6x 16.7x
P/Normalized Earnings** 14.4x -
Period Ending: 12.31.2019 * 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
47 4.3 - 554.4 93.3 34%
764 0.8 - 554.4 130.6 -
# Holdings 47 764
Market Cap ($B) Range 4.3 - 554.4 0.8 - 554.4
Market Cap ($B) Wtd Avg 93.3 130.6
Annual Turnover 34% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.4%
Carnival 3.1%
AerCap Holdings 3.0%
Brookfield Asset Management 3.0%
Chubb 2.6%
Berkshire Hathaway 2.6%
Wells Fargo 2.6%
Eaton 2.6%
Amdocs 2.5%
Verizon Communications 2.5%

Top 10 Holdings1

Arrow Electronics 3.4%
Carnival 3.1%
AerCap Holdings 3.0%
Brookfield Asset Management 3.0%
Chubb 2.6%
Berkshire Hathaway 2.6%
Wells Fargo 2.6%
Eaton 2.6%
Amdocs 2.5%
Verizon Communications 2.5%

Sector Weights1

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

    C&B Large Cap Value
    6.4%
    Russell 1000® Value Index
    8.2%
  • Consumer Discretionary

    C&B Large Cap Value
    8.2%
    Russell 1000® Value Index
    5.9%
  • Consumer Staples

    C&B Large Cap Value
    2.1%
    Russell 1000® Value Index
    8.9%
  • Energy

    C&B Large Cap Value
    3.3%
    Russell 1000® Value Index
    8.2%
  • Financials

    C&B Large Cap Value
    29.4%
    Russell 1000® Value Index
    23.9%
  • Health Care

    C&B Large Cap Value
    12.7%
    Russell 1000® Value Index
    13.0%
  • Industrials

    C&B Large Cap Value
    17.1%
    Russell 1000® Value Index
    9.7%
  • Information Technology

    C&B Large Cap Value
    9.7%
    Russell 1000® Value Index
    6.3%
  • Materials

    C&B Large Cap Value
    4.0%
    Russell 1000® Value Index
    4.3%
  • Real Estate

    C&B Large Cap Value
    2.0%
    Russell 1000® Value Index
    5.2%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    6.6%
  • Cash

    C&B Large Cap Value
    5.1%
    Russell 1000® 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 1000® Value Index (RLV) generated a 7.41% 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 Large Cap Value Disclosures