Mid Cap Value Q2 2020


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40 to 50

companies in our fully invested, concentrated portfolio

22

year track record

$2.8

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

104%

upside market capture ratio since 2000

87%

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

Mid Cap Value

Quarter 2 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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**
13.1% 9.3x 2.6x 16.7x 11.0x
9.9% 7.0x 3.3x 27.7x -
ROC 5 Year Avg 13.1% 9.9%
Cash Interest Coverage 9.3x 7.0x
Debt/EBITDA 2.6x 3.3x
Forecasted P/E** 16.7x 27.7x
P/Normalized Earnings** 11.0x -
Period Ending: 6.30.2020 * 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 1.0 - 58.5 10.1 38%
687 0.6 - 32.8 13.9 -
# Holdings 48 687
Market Cap ($B) Range 1.0 - 58.5 0.6 - 32.8
Market Cap ($B) Wtd Avg 10.1 13.9
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.4%
Helen of Troy 3.3%
TCF Financial 2.9%
Colfax 2.8%
Syneos Health 2.8%
TE Connectivity 2.8%
American Eagle Outfitters 2.8%
Hill-Rom 2.7%
Essent Group 2.6%
State Street 2.6%

Top 10 Holdings1

Arrow Electronics 3.4%
Helen of Troy 3.3%
TCF Financial 2.9%
Colfax 2.8%
Syneos Health 2.8%
TE Connectivity 2.8%
American Eagle Outfitters 2.8%
Hill-Rom 2.7%
Essent Group 2.6%
State Street 2.6%

Sector Weights1

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

    C&B Mid Cap Value
    2.9%
    Russell Midcap® Value Index
    3.7%
  • Consumer Discretionary

    C&B Mid Cap Value
    12.6%
    Russell Midcap® Value Index
    11.2%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.5%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.4%
  • Financials

    C&B Mid Cap Value
    24.0%
    Russell Midcap® Value Index
    15.5%
  • Health Care

    C&B Mid Cap Value
    12.7%
    Russell Midcap® Value Index
    7.7%
  • Industrials

    C&B Mid Cap Value
    26.7%
    Russell Midcap® Value Index
    16.5%
  • Information Technology

    C&B Mid Cap Value
    10.7%
    Russell Midcap® Value Index
    9.7%
  • Materials

    C&B Mid Cap Value
    5.0%
    Russell Midcap® Value Index
    6.7%
  • Real Estate

    C&B Mid Cap Value
    1.8%
    Russell Midcap® Value Index
    11.1%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    9.1%
  • Cash

    C&B Mid Cap Value
    3.5%
    Russell Midcap® 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, value stocks performed well on an absolute basis, with the Russell Midcap® Value Index (RMV) returning 19.95%, but they again lagged their growth counterparts.

Additional Cooke & Bieler Mid Cap Value Disclosures