Mid Cap Value Q1 2020


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40 to 50

companies in our fully invested, concentrated portfolio

22

year track record

$2.5

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

103%

upside market capture ratio since 2000

87%

downside market capture ratio since 2000

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    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
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  • 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 1 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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**
13.2% 9.0x 2.3x 10.1x 8.4x
9.2% 6.7x 3.1x 13.6x -
ROC 5 Year Avg 13.2% 9.2%
Cash Interest Coverage 9.0x 6.7x
Debt/EBITDA 2.3x 3.1x
Forecasted P/E** 10.1x 13.6x
P/Normalized Earnings** 8.4x -
Period Ending: 3.31.2020 * 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
48 0.9 - 45.7 8.8 40%
632 0.1 - 39.3 12.3 -
# Holdings 48 632
Market Cap ($B) Range 0.9 - 45.7 0.1 - 39.3
Market Cap ($B) Wtd Avg 8.8 12.3
Annual Turnover 40% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 3.4%
Hill-Rom 3.2%
Arrow Electronics 3.1%
Colfax 3.1%
Perrigo 2.9%
FirstCash 2.8%
Progressive 2.8%
TCF Financial 2.7%
Integra LifeSciences 2.7%
TE Connectivity 2.6%

Top 10 Holdings1

Helen of Troy 3.4%
Hill-Rom 3.2%
Arrow Electronics 3.1%
Colfax 3.1%
Perrigo 2.9%
FirstCash 2.8%
Progressive 2.8%
TCF Financial 2.7%
Integra LifeSciences 2.7%
TE Connectivity 2.6%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Communication Services

    C&B Mid Cap Value
    3.6%
    Russell Midcap® Value Index
    4.0%
  • Consumer Discretionary

    C&B Mid Cap Value
    12.2%
    Russell Midcap® Value Index
    7.5%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    5.6%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    3.1%
  • Financials

    C&B Mid Cap Value
    23.5%
    Russell Midcap® Value Index
    16.7%
  • Health Care

    C&B Mid Cap Value
    13.1%
    Russell Midcap® Value Index
    8.3%
  • Industrials

    C&B Mid Cap Value
    26.2%
    Russell Midcap® Value Index
    11.9%
  • Information Technology

    C&B Mid Cap Value
    11.3%
    Russell Midcap® Value Index
    8.0%
  • Materials

    C&B Mid Cap Value
    4.9%
    Russell Midcap® Value Index
    7.1%
  • Real Estate

    C&B Mid Cap Value
    1.7%
    Russell Midcap® Value Index
    14.1%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    13.6%
  • Cash

    C&B Mid Cap Value
    3.4%
    Russell Midcap® Value Index
Source: Factset and Russell®

Market Commentary

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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 MidCap® Value Index (RMV) declined by 31.71%, 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 Mid Cap Value Disclosures