SMID Cap Value Q2 2020


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40 to 50

companies in our fully invested, concentrated portfolio

16

year track record

$23

million SMID Cap Value assets under management as of 6/30/2020

107%

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 2 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 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**
12.9% 8.7x 2.8x 18.4x 11.0x
7.2% 5.7x 3.6x 39.7x -
ROC 5 Year Avg 12.9% 7.2%
Cash Interest Coverage 8.7x 5.7x
Debt/EBITDA 2.8x 3.6x
Forecasted P/E** 18.4x 39.7x
P/Normalized Earnings** 11.0x -
Period Ending: 6.30.2020 * 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
47 0.6 - 16.1 4.8 38%
1,867 0.05 - 12.3 4.5 -
# Holdings 47 1,867
Market Cap ($B) Range 0.6 - 16.1 0.05 - 12.3
Market Cap ($B) Wtd Avg 4.8 4.5
Annual Turnover 38% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago 4.4%
Helen of Troy 3.8%
Arrow Electronics 3.4%
TCF Financial 3.2%
American Eagle Outfitters 3.0%
Colfax 2.9%
Schweitzer-Mauduit Int'l. 2.8%
Syneos Health 2.8%
Essent Group 2.8%
FirstCash 2.6%

Top 10 Holdings1

Winnebago 4.4%
Helen of Troy 3.8%
Arrow Electronics 3.4%
TCF Financial 3.2%
American Eagle Outfitters 3.0%
Colfax 2.9%
Schweitzer-Mauduit Int'l. 2.8%
Syneos Health 2.8%
Essent Group 2.8%
FirstCash 2.6%

Sector Weights1

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

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.1%
  • Consumer Discretionary

    C&B SMID Cap Value
    18.0%
    Russell 2500™ Value Index
    12.1%
  • Consumer Staples

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.6%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.9%
  • Financials

    C&B SMID Cap Value
    17.8%
    Russell 2500™ Value Index
    21.1%
  • Health Care

    C&B SMID Cap Value
    12.9%
    Russell 2500™ Value Index
    6.7%
  • Industrials

    C&B SMID Cap Value
    27.9%
    Russell 2500™ Value Index
    17.0%
  • Information Technology

    C&B SMID Cap Value
    9.2%
    Russell 2500™ Value Index
    8.9%
  • Materials

    C&B SMID Cap Value
    8.7%
    Russell 2500™ Value Index
    6.5%
  • Real Estate

    C&B SMID Cap Value
    1.7%
    Russell 2500™ Value Index
    12.7%
  • Utilities

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.5%
  • Cash

    C&B SMID Cap Value
    3.8%
    Russell 2500™ 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 2500™ Value Index (R25IV) returning 20.60%, but they again lagged their growth counterparts.

Additional Cooke & Bieler SMID Cap Value Disclosures