Mid Cap Value Q4 2019


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40 to 50

companies in our fully invested, concentrated portfolio

21

year track record

$3.8

billion Mid 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

Mid Cap Value

Quarter 4 2019

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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**
13.3% 8.1x 2.3x 14.7x 14.2x
9.3% 6.5x 3.1x 17.9x -
ROC 5 Year Avg 13.3% 9.3%
Cash Interest Coverage 8.1x 6.5x
Debt/EBITDA 2.3x 3.1x
Forecasted P/E** 14.7x 17.9x
P/Normalized Earnings** 14.2x -
Period Ending: 12.31.2019 * 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
47 1.3 - 45.6 12.2 34%
631 0.8 - 43.8 15.8 -
# Holdings 47 631
Market Cap ($B) Range 1.3 - 45.6 0.8 - 43.8
Market Cap ($B) Wtd Avg 12.2 15.8
Annual Turnover 34% -
Source: Factset and Russell®

Top 10 Holdings1

TCF Financial 3.8%
Helen of Troy 3.4%
Arrow Electronics 3.4%
Syneos Health 3.3%
American Eagle Outfitters 3.0%
AerCap Holdings 3.0%
Gildan Activewear 2.6%
Amdocs 2.5%
FirstCash 2.5%
Colfax 2.5%

Top 10 Holdings1

TCF Financial 3.8%
Helen of Troy 3.4%
Arrow Electronics 3.4%
Syneos Health 3.3%
American Eagle Outfitters 3.0%
AerCap Holdings 3.0%
Gildan Activewear 2.6%
Amdocs 2.5%
FirstCash 2.5%
Colfax 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
    3.9%
  • Consumer Discretionary

    C&B Mid Cap Value
    13.9%
    Russell Midcap® Value Index
    9.1%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.7%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    5.7%
  • Financials

    C&B Mid Cap Value
    21.3%
    Russell Midcap® Value Index
    18.4%
  • Health Care

    C&B Mid Cap Value
    10.7%
    Russell Midcap® Value Index
    6.9%
  • Industrials

    C&B Mid Cap Value
    25.6%
    Russell Midcap® Value Index
    11.8%
  • Information Technology

    C&B Mid Cap Value
    11.7%
    Russell Midcap® Value Index
    7.6%
  • Materials

    C&B Mid Cap Value
    5.7%
    Russell Midcap® Value Index
    6.7%
  • Real Estate

    C&B Mid Cap Value
    2.1%
    Russell Midcap® Value Index
    14.0%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    11.2%
  • Cash

    C&B Mid Cap Value
    4.6%
    Russell Midcap® 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 MidCap® Value Index (RMV) generated a 6.36% 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 Mid Cap Value Disclosures