Large Cap Value Q4 2020


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40 to 50

companies in our fully invested, concentrated portfolio

43

year track record

$3.8

billion Large Cap Value assets under management as of 12/31/2020

106%

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 4 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 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% 10.9x 2.7x 19.1x 14.0x
10.2% 7.8x 3.4x 23.5x -
ROC 5 Year Avg 11.8% 10.2%
Cash Interest Coverage 10.9x 7.8x
Debt/EBITDA 2.7x 3.4x
Forecasted P/E** 19.1x 23.5x
P/Normalized Earnings** 14.0x -
Period Ending: 12.31.2020 * 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
49 4.5 - 546.3 85.6 43%
855 0.6 - 1,187.8 133.6 -
# Holdings 49 855
Market Cap ($B) Range 4.5 - 546.3 0.6 - 1,187.8
Market Cap ($B) Wtd Avg 85.6 133.6
Annual Turnover 43% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.5%
Charles Schwab 3.2%
Brookfield Asset Management 3.0%
AerCap 3.0%
Synchrony Financial 2.8%
Johnson & Johnson 2.8%
Verizon Communications 2.7%
Berkshire Hathaway 2.5%
Gildan Activewear 2.5%
Leidos 2.5%

Top 10 Holdings1

Arrow Electronics 3.5%
Charles Schwab 3.2%
Brookfield Asset Management 3.0%
AerCap 3.0%
Synchrony Financial 2.8%
Johnson & Johnson 2.8%
Verizon Communications 2.7%
Berkshire Hathaway 2.5%
Gildan Activewear 2.5%
Leidos 2.5%

Sector Weights1

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

    C&B Large Cap Value
    6.7%
    Russell 1000® Value Index
    9.6%
  • Consumer Discretionary

    C&B Large Cap Value
    6.1%
    Russell 1000® Value Index
    7.7%
  • Consumer Staples

    C&B Large Cap Value
    3.0%
    Russell 1000® Value Index
    7.6%
  • Energy

    C&B Large Cap Value
    2.4%
    Russell 1000® Value Index
    4.4%
  • Financials

    C&B Large Cap Value
    34.7%
    Russell 1000® Value Index
    19.6%
  • Health Care

    C&B Large Cap Value
    12.5%
    Russell 1000® Value Index
    13.4%
  • Industrials

    C&B Large Cap Value
    16.6%
    Russell 1000® Value Index
    13.4%
  • Information Technology

    C&B Large Cap Value
    10.1%
    Russell 1000® Value Index
    9.7%
  • Materials

    C&B Large Cap Value
    2.7%
    Russell 1000® Value Index
    4.8%
  • Real Estate

    C&B Large Cap Value
    1.2%
    Russell 1000® Value Index
    4.4%
  • Utilities

    C&B Large Cap Value
    Russell 1000® Value Index
    5.5%
  • Cash

    C&B Large Cap Value
    3.9%
    Russell 1000® 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 Large Cap Value Strategy outperformed the Russell 1000® Value Index for the quarter, returning 21.55% gross of fees (21.39% net of fees) against the benchmark’s 16.25%.

Additional Cooke & Bieler Large Cap Value Disclosures