Large Cap Value Q1 2020


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40 to 50

companies in our fully invested, concentrated portfolio

43

year track record

$2.6

billion Large Cap Value assets under management as of 3/31/2020

103%

upside market capture ratio since 2000

88%

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 1 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
11.4% 10.5x 2.4x 10.7x 9.1x
9.5% 7.2x 3.0x 13.5x -
ROC 5 Year Avg 11.4% 9.5%
Cash Interest Coverage 10.5x 7.2x
Debt/EBITDA 2.4x 3.0x
Forecasted P/E** 10.7x 13.5x
P/Normalized Earnings** 9.1x -
Period Ending: 3.31.2020 * 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
48 2.3 - 445.6 73.1 44%
765 0.1 - 445.6 105.5 -
# Holdings 48 765
Market Cap ($B) Range 2.3 - 445.6 0.1 - 445.6
Market Cap ($B) Wtd Avg 73.1 105.5
Annual Turnover 44% -
Source: Factset and Russell®

Top 10 Holdings1

Brookfield Asset Mgmt. 3.4%
Charles Schwab 3.1%
Arrow Electronics 3.1%
Chubb 3.0%
Johnson & Johnson 3.0%
UnitedHealth 3.0%
Progressive 2.8%
Berkshire Hathaway 2.8%
Colfax 2.7%
TE Connectivity 2.6%

Top 10 Holdings1

Brookfield Asset Mgmt. 3.4%
Charles Schwab 3.1%
Arrow Electronics 3.1%
Chubb 3.0%
Johnson & Johnson 3.0%
UnitedHealth 3.0%
Progressive 2.8%
Berkshire Hathaway 2.8%
Colfax 2.7%
TE Connectivity 2.6%

Sector Weights1

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

    C&B Large Cap Value
    6.1%
    Russell 1000® Value Index
    8.6%
  • Consumer Discretionary

    C&B Large Cap Value
    5.6%
    Russell 1000® Value Index
    5.2%
  • Consumer Staples

    C&B Large Cap Value
    2.3%
    Russell 1000® Value Index
    10.6%
  • Energy

    C&B Large Cap Value
    2.4%
    Russell 1000® Value Index
    5.4%
  • Financials

    C&B Large Cap Value
    34.4%
    Russell 1000® Value Index
    21.3%
  • Health Care

    C&B Large Cap Value
    14.3%
    Russell 1000® Value Index
    15.5%
  • Industrials

    C&B Large Cap Value
    19.2%
    Russell 1000® Value Index
    9.4%
  • Information Technology

    C&B Large Cap Value
    9.4%
    Russell 1000® Value Index
    6.8%
  • Materials

    C&B Large Cap Value
    3.1%
    Russell 1000® Value Index
    4.2%
  • Real Estate

    C&B Large Cap Value
    1.7%
    Russell 1000® Value Index
    5.1%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    7.8%
  • Cash

    C&B Large Cap Value
    1.7%
    Russell 1000® 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 1000® Value Index (RLV) declined by 26.73%, 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 Large Cap Value Disclosures