Mid Cap Value Q4 2020


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40 to 50

companies in our fully invested, concentrated portfolio

22

year track record

$3.2

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

104%

upside market capture ratio since 2000

87%

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

Mid Cap Value

Quarter 4 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 Mid Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.6% 11.1x 2.5x 19.8x 13.6x
9.7% 7.4x 3.5x 29.0x -
ROC 5 Year Avg 12.6% 9.7%
Cash Interest Coverage 11.1x 7.4x
Debt/EBITDA 2.5x 3.5x
Forecasted P/E** 19.8x 29.0x
P/Normalized Earnings** 13.6x -
Period Ending: 12.31.2020 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
50 1.3 - 57.9 11.1 31%
702 0.6 - 51.1 17.9 -
# Holdings 50 702
Market Cap ($B) Range 1.3 - 57.9 0.6 - 51.1
Market Cap ($B) Wtd Avg 11.1 17.9
Annual Turnover 31% -
Source: Factset and Russell®

Top 10 Holdings1

American Eagle Outfitters 4.0%
Gildan Activewear 3.5%
Arrow Electronics 3.4%
Integra LifeSciences 2.9%
TCF Financial 2.9%
AerCap 2.8%
Synchrony Financial 2.7%
IAA 2.6%
Colfax 2.6%
Helen of Troy 2.6%

Top 10 Holdings1

American Eagle Outfitters 4.0%
Gildan Activewear 3.5%
Arrow Electronics 3.4%
Integra LifeSciences 2.9%
TCF Financial 2.9%
AerCap 2.8%
Synchrony Financial 2.7%
IAA 2.6%
Colfax 2.6%
Helen of Troy 2.6%

Sector Weights1

  • C&B Mid Cap Value
  • Russell Midcap® Value Index
  • Communication Services

    C&B Mid Cap Value
    1.7%
    Russell Midcap® Value Index
    4.1%
  • Consumer Discretionary

    C&B Mid Cap Value
    15.5%
    Russell Midcap® Value Index
    12.3%
  • Consumer Staples

    C&B Mid Cap Value
    Russell Midcap® Value Index
    3.9%
  • Energy

    C&B Mid Cap Value
    Russell Midcap® Value Index
    3.8%
  • Financials

    C&B Mid Cap Value
    25.9%
    Russell Midcap® Value Index
    15.3%
  • Health Care

    C&B Mid Cap Value
    10.9%
    Russell Midcap® Value Index
    7.9%
  • Industrials

    C&B Mid Cap Value
    26.3%
    Russell Midcap® Value Index
    17.1%
  • Information Technology

    C&B Mid Cap Value
    11.1%
    Russell Midcap® Value Index
    10.2%
  • Materials

    C&B Mid Cap Value
    4.5%
    Russell Midcap® Value Index
    7.3%
  • Real Estate

    C&B Mid Cap Value
    1.2%
    Russell Midcap® Value Index
    10.1%
  • Utilities

    C&B Mid Cap Value
    Russell Midcap® Value Index
    7.9%
  • Cash

    C&B Mid Cap Value
    2.8%
    Russell Midcap® 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 Mid Cap Value Strategy outperformed the Russell Midcap® Value Index for the quarter, returning 24.21% gross of fees (23.99% net of fees) against the benchmark’s 20.43%.

Additional Cooke & Bieler Mid Cap Value Disclosures