Large Cap Value Q3 2020


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40 to 50

companies in our fully invested, concentrated portfolio

43

year track record

$3.1

billion Large Cap Value assets under management as of 9/30/2020

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 3 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® Value Index
Annualized Returns As of 9.30.2020 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**
11.8% 10.8x 2.7x 16.2x 11.6x
10.2% 7.7x 3.4x 22.0x -
ROC 5 Year Avg 11.8% 10.2%
Cash Interest Coverage 10.8x 7.7x
Debt/EBITDA 2.7x 3.4x
Forecasted P/E** 16.2x 22.0x
P/Normalized Earnings** 11.6x -
Period Ending: 9.30.2020 * 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 2.8 - 511.3 76.2 40%
850 0.7 - 1,001.1 122.1 -
# Holdings 47 850
Market Cap ($B) Range 2.8 - 511.3 0.7 - 1,001.1
Market Cap ($B) Wtd Avg 76.2 122.1
Annual Turnover 40% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.4%
Charles Schwab 3.2%
Chubb 3.1%
Brookfield Asset Management 2.9%
Johnson & Johnson 2.9%
Eaton 2.6%
Synchrony Financial 2.6%
Progressive 2.5%
Whirlpool 2.5%
Gildan Activewear 2.5%

Top 10 Holdings1

Arrow Electronics 3.4%
Charles Schwab 3.2%
Chubb 3.1%
Brookfield Asset Management 2.9%
Johnson & Johnson 2.9%
Eaton 2.6%
Synchrony Financial 2.6%
Progressive 2.5%
Whirlpool 2.5%
Gildan Activewear 2.5%

Sector Weights1

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

    C&B Large Cap Value
    5.7%
    Russell 1000® Value Index
    9.6%
  • Consumer Discretionary

    C&B Large Cap Value
    7.0%
    Russell 1000® Value Index
    7.6%
  • Consumer Staples

    C&B Large Cap Value
    1.7%
    Russell 1000® Value Index
    8.4%
  • Energy

    C&B Large Cap Value
    1.8%
    Russell 1000® Value Index
    4.0%
  • Financials

    C&B Large Cap Value
    32.9%
    Russell 1000® Value Index
    18.1%
  • Health Care

    C&B Large Cap Value
    13.2%
    Russell 1000® Value Index
    14.3%
  • Industrials

    C&B Large Cap Value
    17.4%
    Russell 1000® Value Index
    13.1%
  • Information Technology

    C&B Large Cap Value
    9.7%
    Russell 1000® Value Index
    9.7%
  • Materials

    C&B Large Cap Value
    3.0%
    Russell 1000® Value Index
    4.7%
  • Real Estate

    C&B Large Cap Value
    1.8%
    Russell 1000® Value Index
    4.6%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    6.0%
  • Cash

    C&B Large Cap Value
    6.0%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equity markets continued higher in the third quarter on the heels of further government stimulus, improving economic data, encouraging readouts from COVID-19 vaccine trials, and better clinical outcomes for COVID-19 patients. Though the trend reversed in September, growth stocks again led the charge, with the Russell 1000® Growth Index up 13.22% for the three-month period versus 5.59% for the Russell 1000® Value Index.

After a rough start to 2020, Cooke & Bieler’s Large Cap Value Strategy returned 8.24% gross of fees (8.08% net of fees), solidly outperforming the Russell 1000® Value Index and recouping some of the ground lost in the first quarter.

Additional Cooke & Bieler Large Cap Value Disclosures