Large Cap Value Q2 2020


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40 to 50

companies in our fully invested, concentrated portfolio

43

year track record

$3.0

billion Large Cap Value assets under management as of 6/30/2020

104%

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 2 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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**
11.5% 10.0x 2.5x 16.8x 11.1x
10.4% 7.6x 3.2x 21.9x -
ROC 5 Year Avg 11.5% 10.4%
Cash Interest Coverage 10.0x 7.6x
Debt/EBITDA 2.5x 3.2x
Forecasted P/E** 16.8x 21.9x
P/Normalized Earnings** 11.1x -
Period Ending: 6.30.2020 * 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
47 3.1 - 433.8 74.0 38%
839 0.6 - 969.9 113.6 -
# Holdings 47 839
Market Cap ($B) Range 3.1 - 433.8 0.6 - 969.9
Market Cap ($B) Wtd Avg 74.0 113.6
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.5%
Johnson & Johnson 3.0%
AerCap 3.0%
TE Connectivity 2.9%
Brookfield Asset Management 2.8%
Chubb 2.8%
Colfax 2.8%
Charles Schwab 2.6%
Progressive 2.6%
Berkshire Hathaway 2.6%

Top 10 Holdings1

Arrow Electronics 3.5%
Johnson & Johnson 3.0%
AerCap 3.0%
TE Connectivity 2.9%
Brookfield Asset Management 2.8%
Chubb 2.8%
Colfax 2.8%
Charles Schwab 2.6%
Progressive 2.6%
Berkshire Hathaway 2.6%

Sector Weights1

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

    C&B Large Cap Value
    5.3%
    Russell 1000® Value Index
    9.3%
  • Consumer Discretionary

    C&B Large Cap Value
    5.4%
    Russell 1000® Value Index
    7.0%
  • Consumer Staples

    C&B Large Cap Value
    1.7%
    Russell 1000® Value Index
    8.1%
  • Energy

    C&B Large Cap Value
    2.5%
    Russell 1000® Value Index
    5.3%
  • Financials

    C&B Large Cap Value
    33.2%
    Russell 1000® Value Index
    18.5%
  • Health Care

    C&B Large Cap Value
    14.0%
    Russell 1000® Value Index
    14.1%
  • Industrials

    C&B Large Cap Value
    20.1%
    Russell 1000® Value Index
    12.3%
  • Information Technology

    C&B Large Cap Value
    9.2%
    Russell 1000® Value Index
    10.2%
  • Materials

    C&B Large Cap Value
    3.2%
    Russell 1000® Value Index
    4.5%
  • Real Estate

    C&B Large Cap Value
    1.8%
    Russell 1000® Value Index
    4.7%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    5.9%
  • Cash

    C&B Large Cap Value
    3.6%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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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, large cap value stocks performed well on an absolute basis, with the Russell 1000® Value Index (RLV) returning 14.29%, but they again lagged their growth counterparts, and in a shift from last quarter, also trailed their mid and small cap brethren.

Additional Cooke & Bieler Large Cap Value Disclosures