Small Cap Value Q3 2020


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40 to 60

companies in our fully invested, concentrated portfolio

12

year track record

$1.5

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

115%

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 3 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 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**
12.9% 9.0x 3.2x 31.9x 11.4x
6.6% 5.6x 4.1x 67.0x -
ROC 5 Year Avg 12.9% 6.6%
Cash Interest Coverage 9.0x 5.6x
Debt/EBITDA 3.2x 4.1x
Forecasted P/E** 31.9x 67.0x
P/Normalized Earnings** 11.4x -
Period Ending: 9.30.2020 * 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
47 0.5 - 7.0 3.2 42%
1,459 0.03 - 10.0 1.9 -
# Holdings 47 1,459
Market Cap ($B) Range 0.5 - 7.0 0.03 - 10.0
Market Cap ($B) Wtd Avg 3.2 1.9
Annual Turnover 42% -
Source: Factset and Russell®

Top 10 Holdings1

American Eagle Outfitters 4.0%
Gildan Activewear 3.8%
Winnebago 3.8%
Helen of Troy 3.7%
PGT Innovations 3.4%
Essent Group 3.4%
Colfax 3.1%
IAA 3.1%
Integra LifeSciences 3.0%
Schweitzer-Mauduit 3.0%

Top 10 Holdings1

American Eagle Outfitters 4.0%
Gildan Activewear 3.8%
Winnebago 3.8%
Helen of Troy 3.7%
PGT Innovations 3.4%
Essent Group 3.4%
Colfax 3.1%
IAA 3.1%
Integra LifeSciences 3.0%
Schweitzer-Mauduit 3.0%

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
    21.4%
    Russell 2000® Value Index
    13.3%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000® Value Index
    3.7%
  • Energy

    C&B Small Cap Value
    0.8%
    Russell 2000® Value Index
    3.9%
  • Financials

    C&B Small Cap Value
    18.4%
    Russell 2000® Value Index
    26.6%
  • Health Care

    C&B Small Cap Value
    9.2%
    Russell 2000® Value Index
    6.9%
  • Industrials

    C&B Small Cap Value
    32.4%
    Russell 2000® Value Index
    16.8%
  • Information Technology

    C&B Small Cap Value
    6.0%
    Russell 2000® Value Index
    6.0%
  • Materials

    C&B Small Cap Value
    8.9%
    Russell 2000® Value Index
    5.6%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    9.9%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    5.0%
  • Cash

    C&B Small Cap Value
    2.9%
    Russell 2000® 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 2000® Growth Index up 7.16% for the three-month period versus 2.56% for the Russell 2000® Value Index.

After a strong start to 2020, Cooke & Bieler’s Small Cap Value Strategy returned 0.87% gross of fees (0.62% net of fees), underperforming the Russell 2000® Value Index.

Additional Cooke & Bieler Small Cap Value Disclosures