Concentrated Value Q2 2020


Download the Factsheet
15 to 25

companies in our fully invested, concentrated portfolio

4

year track record

$9

million CV assets under management as of 6/30/2020

146%

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 2 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 6.30.2020 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**
14.3% 8.7x 2.6x 15.1x 10.6x
7.9% 6.2x 3.5x 22.9x -
ROC 5 Year Avg 14.3% 7.9%
Cash Interest Coverage 8.7x 6.2x
Debt/EBITDA 2.6x 3.5x
Forecasted P/E** 15.1x 22.9x
P/Normalized Earnings** 10.6x -
Period Ending: 6.30.2020 * 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 2.2 - 370.2 66.1 62%
2,278` 0.05 - 969.9 107.2 -
# Holdings 22 2,278`
Market Cap ($B) Range 2.2 - 370.2 0.05 - 969.9
Market Cap ($B) Wtd Avg 66.1 107.2
Annual Turnover 62% -
Source: Factset and Russell®

Top 10 Holdings1

Intercont'l. Exchange 6.8%
Chubb 6.6%
Brookfield Asset Management 6.1%
Arrow Electronics 6.0%
Winnebago 5.3%
Johnson & Johnson 5.3%
Philip Morris 5.0%
AerCap 4.5%
Progressive 4.3%
State Street 4.3%

Top 10 Holdings1

Intercont'l. Exchange 6.8%
Chubb 6.6%
Brookfield Asset Management 6.1%
Arrow Electronics 6.0%
Winnebago 5.3%
Johnson & Johnson 5.3%
Philip Morris 5.0%
AerCap 4.5%
Progressive 4.3%
State Street 4.3%

Sector Weights1

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

    C&B Concentrated Value
    4.1%
    Russell 3000® Value Index
    8.9%
  • Consumer Discretionary

    C&B Concentrated Value
    9.3%
    Russell 3000® Value Index
    7.2%
  • Consumer Staples

    C&B Concentrated Value
    5.0%
    Russell 3000® Value Index
    7.9%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    5.2%
  • Financials

    C&B Concentrated Value
    41.9%
    Russell 3000® Value Index
    19.1%
  • Health Care

    C&B Concentrated Value
    14.2%
    Russell 3000® Value Index
    13.6%
  • Industrials

    C&B Concentrated Value
    11.6%
    Russell 3000® Value Index
    12.6%
  • Information Technology

    C&B Concentrated Value
    9.3%
    Russell 3000® Value Index
    10.0%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    4.5%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.1%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    5.9%
  • Cash

    C&B Concentrated Value
    4.7%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

Equity indices staged a remarkable comeback in the second quarter following last quarter’s quickest-ever bear market descent.Buoyed by massive government stimulus, the hope for a COVID-19 vaccine, and indications of sequential economic improvement, value stocks performed well on an absolute basis, with the Russell 3000® Value Index (RAV) returning 14.55%, but they again lagged their growth counterparts.

Additional Cooke & Bieler Concentrated Value Disclosures