Concentrated Value Q1 2021


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15 to 25

companies in our fully invested, concentrated portfolio

5

year track record

$86

million CV assets under management as of 3/31/2021

140%

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 1 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 3.31.2021 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**
12.5% 9.5x 3.1x 15.4x 14.1x
7.5% 6.4x 3.4x 19.6x -
ROC 5 Year Avg 12.5% 7.5%
Cash Interest Coverage 9.5x 6.4x
Debt/EBITDA 3.1x 3.4x
Forecasted P/E** 15.4x 19.6x
P/Normalized Earnings** 14.1x -
Period Ending: 3.31.2021 * 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 2.6 - 432.7 75.8 64%
2,367 0.05 - 1,396.8 136.7 -
# Holdings 21 2,367
Market Cap ($B) Range 2.6 - 432.7 0.05 - 1,396.8
Market Cap ($B) Wtd Avg 75.8 136.7
Annual Turnover 64% -
Source: Factset and Russell®

Top 10 Holdings1

Arch Capital 7.3%
Brookfield Asset Management 6.3%
Gildan Activewear 6.2%
Arrow Electronics 5.9%
AerCap 5.8%
Wells Fargo 5.4%
Helen of Troy 5.1%
Philip Morris 4.8%
BWX Technologies 4.4%
Chubb 4.4%

Top 10 Holdings1

Arch Capital 7.3%
Brookfield Asset Management 6.3%
Gildan Activewear 6.2%
Arrow Electronics 5.9%
AerCap 5.8%
Wells Fargo 5.4%
Helen of Troy 5.1%
Philip Morris 4.8%
BWX Technologies 4.4%
Chubb 4.4%

Sector Weights1

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

    C&B Concentrated Value
    Russell 3000® Value Index
    8.7%
  • Consumer Discretionary

    C&B Concentrated Value
    15.4%
    Russell 3000® Value Index
    8.3%
  • Consumer Staples

    C&B Concentrated Value
    4.8%
    Russell 3000® Value Index
    6.8%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    5.1%
  • Financials

    C&B Concentrated Value
    31.4%
    Russell 3000® Value Index
    21.1%
  • Health Care

    C&B Concentrated Value
    19.6%
    Russell 3000® Value Index
    12.2%
  • Industrials

    C&B Concentrated Value
    18.2%
    Russell 3000® Value Index
    14.1%
  • Information Technology

    C&B Concentrated Value
    9.5%
    Russell 3000® Value Index
    9.3%
  • Materials

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

    C&B Concentrated Value
    Russell 3000® Value Index
    4.6%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    5.0%
  • Cash

    C&B Concentrated Value
    1.1%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

U.S. equity markets continued to surge during the first quarter of 2021. Intensifying economic momentum, another enormous dose of fiscal stimulus, highly accommodative monetary policy, and expanding vaccine availability further fueled the market’s appetite for risk. That appetite was voracious for the stocks of companies poised to benefit most from economic reopening and recovery, keeping small cap well ahead of the pack along with cyclical and financial issues.

Cooke & Bieler’s Concentrated Value Strategy returned 12.90% gross of fees (12.69% net of fees), outperforming the Russell 3000® Value Index, which returned 11.89%.

Additional Cooke & Bieler Concentrated Value Disclosures