Concentrated Value Q1 2020


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15 to 25

companies in our fully invested, concentrated portfolio

4

year track record

$8

million CV assets under management as of 3/31/2020

148%

upside market capture ratio since inception (7/1/15)

105%

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 1 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 3.31.2020 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**
15.4% 10.3x 2.5x 10.3x 8.8x
7.7% 5.8x 3.2x 13.6x -
ROC 5 Year Avg 15.4% 7.7%
Cash Interest Coverage 10.3x 5.8x
Debt/EBITDA 2.5x 3.2x
Forecasted P/E** 10.3x 13.6x
P/Normalized Earnings** 8.8x -
Period Ending: 3.31.2020 * 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
22 0.9 - 345.2 59.0 75%
2,156 0.01 - 445.6 99.5 -
# Holdings 22 2,156
Market Cap ($B) Range 0.9 - 345.2 0.01 - 445.6
Market Cap ($B) Wtd Avg 59.0 99.5
Annual Turnover 75% -
Source: Factset and Russell®

Top 10 Holdings1

Philip Morris 7.2%
Intercont'l. Exchange 7.1%
Brookfield Asset Mgmt 6.5%
Chubb 5.4%
Arrow Electronics 5.4%
Charles Schwab 5.0%
Omnicom 4.9%
Wells Fargo 4.8%
Progressive 4.8%
Medtronic 4.4%

Top 10 Holdings1

Philip Morris 7.2%
Intercont'l. Exchange 7.1%
Brookfield Asset Mgmt 6.5%
Chubb 5.4%
Arrow Electronics 5.4%
Charles Schwab 5.0%
Omnicom 4.9%
Wells Fargo 4.8%
Progressive 4.8%
Medtronic 4.4%

Sector Weights1

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

    C&B Concentrated Value
    4.9%
    Russell 3000® Value Index
    8.3%
  • Consumer Discretionary

    C&B Concentrated Value
    7.7%
    Russell 3000® Value Index
    5.3%
  • Consumer Staples

    C&B Concentrated Value
    7.2%
    Russell 3000® Value Index
    10.2%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    5.3%
  • Financials

    C&B Concentrated Value
    40.2%
    Russell 3000® Value Index
    21.8%
  • Health Care

    C&B Concentrated Value
    18.3%
    Russell 3000® Value Index
    15.0%
  • Industrials

    C&B Concentrated Value
    10.8%
    Russell 3000® Value Index
    9.6%
  • Information Technology

    C&B Concentrated Value
    8.4%
    Russell 3000® Value Index
    7.1%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    4.2%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.5%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    7.8%
  • Cash

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

Market Commentary

Download Commentary

The scale and speed of this quarter’s equity market rout were unprecedented, marked by the fastest bear market descent in U.S. history. The wholesale selloff was staggering and unforeseen, but with no historical analog for the unfolding coronavirus pandemic and economic landscape, it was in many respects understandable. 

Against this backdrop, the Russell 3000® Value Index (RAV) declined by 27.32%, the worst quarterly result since its inception. Performance was broadly negative across Index constituents, ranging from bad in the Utilities and Consumer Staples sectors to atrocious in Energy, where freefalling demand converged with free-flowing supply.

Additional Cooke & Bieler Concentrated Value Disclosures