SMID Cap Value Q4 2020


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40 to 50

companies in our fully invested, concentrated portfolio

16

year track record

$99

million SMID Cap Value assets under management as of 12/31/2020

105%

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 4 2020

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 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**
12.5% 9.6x 2.9x 24.5x 13.4x
7.0% 6.1x 3.6x 40.7x -
ROC 5 Year Avg 12.5% 7.0%
Cash Interest Coverage 9.6x 6.1x
Debt/EBITDA 2.9x 3.6x
Forecasted P/E** 24.5x 40.7x
P/Normalized Earnings** 13.4x -
Period Ending: 12.31.2020 * 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 0.7 - 14.6 5.5 35%
1,926 0.04 - 31.6 6.1 -
# Holdings 48 1,926
Market Cap ($B) Range 0.7 - 14.6 0.04 - 31.6
Market Cap ($B) Wtd Avg 5.5 6.1
Annual Turnover 35% -
Source: Factset and Russell®

Top 10 Holdings1

American Eagle Outfitters 4.3%
Winnebago Industries 3.8%
Gildan Activewear 3.5%
Arrow Electronics 3.4%
Essent 3.1%
Integra LifeSciences 3.0%
TCF Financial 2.7%
AerCap 2.7%
IAA 2.7%
Schweitzer-Mauduit 2.7%

Top 10 Holdings1

American Eagle Outfitters 4.3%
Winnebago Industries 3.8%
Gildan Activewear 3.5%
Arrow Electronics 3.4%
Essent 3.1%
Integra LifeSciences 3.0%
TCF Financial 2.7%
AerCap 2.7%
IAA 2.7%
Schweitzer-Mauduit 2.7%

Sector Weights1

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

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

    C&B SMID Cap Value
    18.2%
    Russell 2500™ Value Index
    13.2%
  • Consumer Staples

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

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

    C&B SMID Cap Value
    20.1%
    Russell 2500™ Value Index
    20.8%
  • Health Care

    C&B SMID Cap Value
    10.4%
    Russell 2500™ Value Index
    6.6%
  • Industrials

    C&B SMID Cap Value
    31.9%
    Russell 2500™ Value Index
    17.5%
  • Information Technology

    C&B SMID Cap Value
    10.1%
    Russell 2500™ Value Index
    9.3%
  • Materials

    C&B SMID Cap Value
    8.0%
    Russell 2500™ Value Index
    7.1%
  • Real Estate

    C&B SMID Cap Value
    Russell 2500™ Value Index
    11.2%
  • Utilities

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.1%
  • Cash

    C&B SMID Cap Value
    1.3%
    Russell 2500™ 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 SMID Cap Value Strategy underperformed the Russell 2500™ Value Index for the quarter, returning 25.36% gross of fees (25.10% net of fees) against the benchmark’s 28.51%.

Additional Cooke & Bieler SMID Cap Value Disclosures