Small Cap Value Q1 2020


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40 to 60

companies in our fully invested, concentrated portfolio

11

year track record

$1.1

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

112%

upside market capture ratio since inception (8/1/08)

83%

downside market capture ratio since inception (8/1/08)

  • 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

Small Cap Value

Quarter 1 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 Small Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Small Cap Value
  • Russell 2000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.4% 7.8x 2.6x 11.3x 8.2x
6.7% 5.1x 3.3x 14.9x -
ROC 5 Year Avg 12.4% 6.7%
Cash Interest Coverage 7.8x 5.1x
Debt/EBITDA 2.6x 3.3x
Forecasted P/E** 11.3x 14.9x
P/Normalized Earnings** 8.2x -
Period Ending: 3.31.2020 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Small Cap Value
  • Russell 2000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
45 0.5 - 6.7 2.6 43%
1,391 0.01 - 5.5 1.6 -
# Holdings 45 1,391
Market Cap ($B) Range 0.5 - 6.7 0.01 - 5.5
Market Cap ($B) Wtd Avg 2.6 1.6
Annual Turnover 43% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 3.8%
Hill-Rom 3.8%
Colfax 3.7%
Winnebago 3.7%
FirstCash 3.6%
Schweitzer-Mauduit 3.4%
TCF Financial 3.4%
Glacier Bancorp 3.4%
PGT Innovations 3.0%
Integra LifeSciences 2.9%

Top 10 Holdings1

Helen of Troy 3.8%
Hill-Rom 3.8%
Colfax 3.7%
Winnebago 3.7%
FirstCash 3.6%
Schweitzer-Mauduit 3.4%
TCF Financial 3.4%
Glacier Bancorp 3.4%
PGT Innovations 3.0%
Integra LifeSciences 2.9%

Sector Weights1

  • C&B Small Cap Value
  • Russell 2000® Value Index
  • Communication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    2.2%
  • Consumer Discretionary

    C&B Small Cap Value
    18.0%
    Russell 2000® Value Index
    7.8%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000® Value Index
    3.4%
  • Energy

    C&B Small Cap Value
    Russell 2000® Value Index
    3.5%
  • Financials

    C&B Small Cap Value
    20.6%
    Russell 2000® Value Index
    29.9%
  • Health Care

    C&B Small Cap Value
    11.7%
    Russell 2000® Value Index
    6.0%
  • Industrials

    C&B Small Cap Value
    31.5%
    Russell 2000® Value Index
    12.5%
  • Information Technology

    C&B Small Cap Value
    5.0%
    Russell 2000® Value Index
    11.4%
  • Materials

    C&B Small Cap Value
    9.4%
    Russell 2000® Value Index
    4.3%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    11.5%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    7.6%
  • Cash

    C&B Small Cap Value
    3.6%
    Russell 2000® 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 2000® Value Index (RUJ) declined by 35.66%, 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 Small Cap Value Disclosures