SMID Cap Value Q3 2020


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40 to 50

companies in our fully invested, concentrated portfolio

16

year track record

$24

million SMID Cap Value assets under management as of 9/30/2020

106%

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 3 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 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**
12.8% 9.7x 2.9x 20.8x 11.1x
7.1% 6.1x 3.9x 36.7x -
ROC 5 Year Avg 12.8% 7.1%
Cash Interest Coverage 9.7x 6.1x
Debt/EBITDA 2.9x 3.9x
Forecasted P/E** 20.8x 36.7x
P/Normalized Earnings** 11.1x -
Period Ending: 9.30.2020 * 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
48 0.5 - 15.7 4.8 39%
1,894 0.03 - 23.0 4.9 -
# Holdings 48 1,894
Market Cap ($B) Range 0.5 - 15.7 0.03 - 23.0
Market Cap ($B) Wtd Avg 4.8 4.9
Annual Turnover 39% -
Source: Factset and Russell®

Top 10 Holdings1

American Eagle Outfitters 4.0%
Helen of Troy 3.7%
Arrow Electronics 3.4%
Winnebago 3.3%
Essent Group 3.2%
Gildan Activewear 3.1%
Whirlpool 2.8%
IAA 2.7%
PGT Innovations 2.6%
Colfax 2.6%

Top 10 Holdings1

American Eagle Outfitters 4.0%
Helen of Troy 3.7%
Arrow Electronics 3.4%
Winnebago 3.3%
Essent Group 3.2%
Gildan Activewear 3.1%
Whirlpool 2.8%
IAA 2.7%
PGT Innovations 2.6%
Colfax 2.6%

Sector Weights1

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

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.5%
  • Consumer Discretionary

    C&B SMID Cap Value
    19.7%
    Russell 2500™ Value Index
    13.3%
  • Consumer Staples

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

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.2%
  • Financials

    C&B SMID Cap Value
    18.0%
    Russell 2500™ Value Index
    19.7%
  • Health Care

    C&B SMID Cap Value
    10.7%
    Russell 2500™ Value Index
    7.0%
  • Industrials

    C&B SMID Cap Value
    30.5%
    Russell 2500™ Value Index
    17.8%
  • Information Technology

    C&B SMID Cap Value
    10.1%
    Russell 2500™ Value Index
    8.6%
  • Materials

    C&B SMID Cap Value
    8.2%
    Russell 2500™ Value Index
    6.8%
  • Real Estate

    C&B SMID Cap Value
    1.7%
    Russell 2500™ Value Index
    12.0%
  • Utilities

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

    C&B SMID Cap Value
    1.1%
    Russell 2500™ 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 2500™ Growth Index up 9.37% for the three-month period versus 3.54% for the Russell 2500™ Value Index.

After a strong start to 2020, Cooke & Bieler’s SMID Cap Value Strategy returned 2.25% gross of fees (2.02% net of fees), underperforming the Russell 2500™ Value Index.

Additional Cooke & Bieler SMID Cap Value Disclosures