Concentrated Value Q4 2020


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15 to 25

companies in our fully invested, concentrated portfolio

5

year track record

$67

million CV assets under management as of 12/31/2020

143%

upside market capture ratio since inception (7/1/15)

105%

downside market capture ratio since inception (7/1/15)

  • 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

    • Long-term/low turnover
    • Fully invested/limit on cash
  • Performance

    • Consistent pattern of results
    • Objective: Outperform the benchmark over the longer term

Concentrated Value

Quarter 4 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 12.31.2020 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 Concentrated Value Performance Disclosures

Quality Characteristics1

  • C&B Concentrated Value
  • Russell 3000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.6% 9.6x 3.6x 22.2x 12.9x
7.6% 6.6x 3.5x 24.5x -
ROC 5 Year Avg 12.6% 7.6%
Cash Interest Coverage 9.6x 6.6x
Debt/EBITDA 3.6x 3.5x
Forecasted P/E** 22.2x 24.5x
P/Normalized Earnings** 12.9x -
Period Ending: 12.31.2020 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Concentrated Value
  • Russell 3000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
21 2.0 - 414.3 71.0 60%
2,341 0.04 - 1,187.8 125.1 -
# Holdings 21 2,341
Market Cap ($B) Range 2.0 - 414.3 0.04 - 1,187.8
Market Cap ($B) Wtd Avg 71.0 125.1
Annual Turnover 60% -
Source: Factset and Russell®

Top 10 Holdings1

Chubb 6.7%
Arch Capital 6.4%
Wells Fargo 5.9%
Arrow Electronics 5.8%
Brookfield Asset Management 5.8%
Gildan Activewear 5.5%
Charles Schwab 5.0%
AerCap 5.0%
Integra LifeSciences 4.7%
Johnson & Johnson 4.5%

Top 10 Holdings1

Chubb 6.7%
Arch Capital 6.4%
Wells Fargo 5.9%
Arrow Electronics 5.8%
Brookfield Asset Management 5.8%
Gildan Activewear 5.5%
Charles Schwab 5.0%
AerCap 5.0%
Integra LifeSciences 4.7%
Johnson & Johnson 4.5%

Sector Weights1

  • C&B Concentrated Value
  • Russell 3000® Value Index
  • Communication Services

    C&B Concentrated Value
    Russell 3000® Value Index
    9.2%
  • Consumer Discretionary

    C&B Concentrated Value
    13.0%
    Russell 3000® Value Index
    8.0%
  • Consumer Staples

    C&B Concentrated Value
    4.5%
    Russell 3000® Value Index
    7.4%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    4.4%
  • Financials

    C&B Concentrated Value
    37.2%
    Russell 3000® Value Index
    20.1%
  • Health Care

    C&B Concentrated Value
    19.8%
    Russell 3000® Value Index
    13.0%
  • Industrials

    C&B Concentrated Value
    13.0%
    Russell 3000® Value Index
    13.6%
  • Information Technology

    C&B Concentrated Value
    9.6%
    Russell 3000® Value Index
    9.5%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    4.9%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    4.7%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    5.4%
  • Cash

    C&B Concentrated Value
    3.0%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equity markets ended 2020 on a very strong note, with a fourth quarter advance powerful enough to propel all major indices to positive annual results. Bookending a year that started with their steepest decline on record, small capitalization value stocks roared ahead, posting their best quarter ever in Q4 and beating large cap value issues on a full-year basis for the first time since 2016.

As the tumultuous year of 2020 came to an end, Cooke & Bieler’s Concentrated Value Strategy outperformed the Russell 3000® Value Index for the quarter, returning 25.19% gross of fees (24.98% net of fees) against the benchmark’s 17.21%.

Additional Cooke & Bieler Concentrated Value Disclosures