SMID Cap Value Q1 2020


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40 to 50

companies in our fully invested, concentrated portfolio

16

year track record

$18

million SMID Cap Value assets under management as of 3/31/2020

105%

upside market capture ratio since inception (1/1/04)

96%

downside market capture ratio since inception (1/1/04)

  • 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

SMID Cap Value

Quarter 1 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 SMID Cap Value Performance Disclosures

Quality Characteristics1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.5% 8.1x 2.7x 10.4x 8.0x
7.1% 5.4x 3.3x 14.0x -
ROC 5 Year Avg 12.5% 7.1%
Cash Interest Coverage 8.1x 5.4x
Debt/EBITDA 2.7x 3.3x
Forecasted P/E** 10.4x 14.0x
P/Normalized Earnings** 8.0x -
Period Ending: 3.31.2020 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
46 0.5 - 12.6 3.8 39%
1,795 0.01 - 12.9 4.1 -
# Holdings 46 1,795
Market Cap ($B) Range 0.5 - 12.6 0.01 - 12.9
Market Cap ($B) Wtd Avg 3.8 4.1
Annual Turnover 39% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 4.3%
Winnebago 3.5%
Colfax 3.4%
Arrow Electronics 3.3%
TCF Financial 3.1%
Schweitzer-Mauduit 3.0%
Integra LifeSciences 2.8%
Hill-Rom 2.8%
American Eagle Outfitters 2.8%
BWX Technologies 2.7%

Top 10 Holdings1

Helen of Troy 4.3%
Winnebago 3.5%
Colfax 3.4%
Arrow Electronics 3.3%
TCF Financial 3.1%
Schweitzer-Mauduit 3.0%
Integra LifeSciences 2.8%
Hill-Rom 2.8%
American Eagle Outfitters 2.8%
BWX Technologies 2.7%

Sector Weights1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index
  • Communication Services

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.3%
  • Consumer Discretionary

    C&B SMID Cap Value
    17.4%
    Russell 2500™ Value Index
    8.4%
  • Consumer Staples

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.0%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    2.2%
  • Financials

    C&B SMID Cap Value
    18.0%
    Russell 2500™ Value Index
    22.6%
  • Health Care

    C&B SMID Cap Value
    14.6%
    Russell 2500™ Value Index
    7.5%
  • Industrials

    C&B SMID Cap Value
    26.3%
    Russell 2500™ Value Index
    13.3%
  • Information Technology

    C&B SMID Cap Value
    10.3%
    Russell 2500™ Value Index
    10.5%
  • Materials

    C&B SMID Cap Value
    9.1%
    Russell 2500™ Value Index
    6.3%
  • Real Estate

    C&B SMID Cap Value
    1.3%
    Russell 2500™ Value Index
    14.7%
  • Utilities

    C&B SMID Cap Value
    Russell 2500™ Value Index
    7.2%
  • Cash

    C&B SMID Cap Value
    3.0%
    Russell 2500™ 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. Volatility spiked meaningfully following a respite in 2019. 

Against this backdrop, the Russell 2500™ Value Index (R25IV) declined by 34.64%, 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 SMID Cap Value Disclosures