Small Cap Value Q4 2020


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40 to 60

companies in our fully invested, concentrated portfolio

12

year track record

$1.9

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

112%

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 4 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 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**
12.3% 7.9x 3.0x 31.6x 14.1x
6.4% 5.6x 3.6x 70.3x -
ROC 5 Year Avg 12.3% 6.4%
Cash Interest Coverage 7.9x 5.6x
Debt/EBITDA 3.0x 3.6x
Forecasted P/E** 31.6x 70.3x
P/Normalized Earnings** 14.1x -
Period Ending: 12.31.2020 * 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
46 0.6 - 8.7 4.0 35%
1,486 0.04 - 13.4 2.5 -
# Holdings 46 1,486
Market Cap ($B) Range 0.6 - 8.7 0.04 - 13.4
Market Cap ($B) Wtd Avg 4.0 2.5
Annual Turnover 35% -
Source: Factset and Russell®

Top 10 Holdings1

Gildan Activewear 4.2%
American Eagle Outfitters 4.2%
Winnebago Industries 3.8%
Integra LifeSciences 3.4%
Colfax 3.2%
Essent Group 3.1%
PGT Innovations 3.1%
Schweitzer-Mauduit 3.1%
American Woodmark 3.1%
Glacier Bancorp 3.0%

Top 10 Holdings1

Gildan Activewear 4.2%
American Eagle Outfitters 4.2%
Winnebago Industries 3.8%
Integra LifeSciences 3.4%
Colfax 3.2%
Essent Group 3.1%
PGT Innovations 3.1%
Schweitzer-Mauduit 3.1%
American Woodmark 3.1%
Glacier Bancorp 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
    20.4%
    Russell 2000® Value Index
    12.8%
  • Consumer Staples

    C&B Small Cap Value
    Russell 2000® Value Index
    3.6%
  • Energy

    C&B Small Cap Value
    0.8%
    Russell 2000® Value Index
    4.2%
  • Financials

    C&B Small Cap Value
    18.4%
    Russell 2000® Value Index
    27.6%
  • Health Care

    C&B Small Cap Value
    9.3%
    Russell 2000® Value Index
    6.4%
  • Industrials

    C&B Small Cap Value
    32.2%
    Russell 2000® Value Index
    16.8%
  • Information Technology

    C&B Small Cap Value
    5.0%
    Russell 2000® Value Index
    6.4%
  • Materials

    C&B Small Cap Value
    8.9%
    Russell 2000® Value Index
    6.2%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    9.1%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    4.5%
  • Cash

    C&B Small Cap Value
    4.8%
    Russell 2000® 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 Small Cap Value Strategy underperformed the Russell 2000® Value Index for the quarter, returning 29.22% gross of fees (28.92% net of fees) against the benchmark’s 33.36%.

Additional Cooke & Bieler Small Cap Value Disclosures