Small Cap Value Q2 2020


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40 to 60

companies in our fully invested, concentrated portfolio

11

year track record

$1.4

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

116%

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 2 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 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**
12.8% 7.9x 3.0x 21.6x 11.4x
6.6% 5.3x 3.8x 81.8x -
ROC 5 Year Avg 12.8% 6.6%
Cash Interest Coverage 7.9x 5.3x
Debt/EBITDA 3.0x 3.8x
Forecasted P/E** 21.6x 81.8x
P/Normalized Earnings** 11.4x -
Period Ending: 6.30.2020 * 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
44 0.6 - 7.3 3.1 44%
1,439 0.05 - 4.6 1.6 -
# Holdings 44 1,439
Market Cap ($B) Range 0.6 - 7.3 0.05 - 4.6
Market Cap ($B) Wtd Avg 3.1 1.6
Annual Turnover 44% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago 4.4%
PGT Innovations 4.3%
Helen of Troy 3.8%
TCF Financial 3.4%
Colfax 3.2%
Schweitzer-Mauduit 3.1%
FirstCash 3.1%
Gildan Activewear 3.0%
American Eagle Outfitters 3.0%
Essent Group 2.9%

Top 10 Holdings1

Winnebago 4.4%
PGT Innovations 4.3%
Helen of Troy 3.8%
TCF Financial 3.4%
Colfax 3.2%
Schweitzer-Mauduit 3.1%
FirstCash 3.1%
Gildan Activewear 3.0%
American Eagle Outfitters 3.0%
Essent Group 2.9%

Sector Weights1

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

    C&B Small Cap Value
    Russell 2000® Value Index
    2.4%
  • Consumer Discretionary

    C&B Small Cap Value
    20.4%
    Russell 2000® Value Index
    10.9%
  • Consumer Staples

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

    C&B Small Cap Value
    Russell 2000® Value Index
    4.4%
  • Financials

    C&B Small Cap Value
    17.5%
    Russell 2000® Value Index
    29.0%
  • Health Care

    C&B Small Cap Value
    9.4%
    Russell 2000® Value Index
    6.2%
  • Industrials

    C&B Small Cap Value
    33.0%
    Russell 2000® Value Index
    16.1%
  • Information Technology

    C&B Small Cap Value
    4.9%
    Russell 2000® Value Index
    6.2%
  • Materials

    C&B Small Cap Value
    9.3%
    Russell 2000® Value Index
    5.5%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    10.4%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    5.4%
  • Cash

    C&B Small Cap Value
    5.6%
    Russell 2000® 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 2000® Value Index (RUJ) returning 18.91%, but they again lagged their growth counterparts.

Additional Cooke & Bieler Small Cap Value Disclosures