Mid Cap Value Q1 2021


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40 to 50

companies in our fully invested, concentrated portfolio

23

year track record

$3.6

billion Mid Cap Value assets under management as of 3/31/2021

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 1 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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% 10.6x 2.6x 15.3x 14.8x
9.8% 7.1x 3.3x 21.2x -
ROC 5 Year Avg 12.6% 9.8%
Cash Interest Coverage 10.6x 7.1x
Debt/EBITDA 2.6x 3.3x
Forecasted P/E** 15.3x 21.2x
P/Normalized Earnings** 14.8x -
Period Ending: 3.31.2021 * 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
48 1.5 - 56.0 11.3 37%
707 0.7 - 55.9 19.9 -
# Holdings 48 707
Market Cap ($B) Range 1.5 - 56.0 0.7 - 55.9
Market Cap ($B) Wtd Avg 11.3 19.9
Annual Turnover 37% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.5%
Gildan Activewear 3.4%
AerCap 3.2%
FirstCash 3.2%
Fidelity National Financial 3.0%
Leidos 2.9%
Arch Capital 2.9%
Helen of Troy 2.7%
BWX Technologies 2.7%
Integra LifeSciences 2.7%

Top 10 Holdings1

Arrow Electronics 3.5%
Gildan Activewear 3.4%
AerCap 3.2%
FirstCash 3.2%
Fidelity National Financial 3.0%
Leidos 2.9%
Arch Capital 2.9%
Helen of Troy 2.7%
BWX Technologies 2.7%
Integra LifeSciences 2.7%

Sector Weights1

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

    C&B Mid Cap Value
    1.8%
    Russell Midcap® Value Index
    4.2%
  • Consumer Discretionary

    C&B Mid Cap Value
    15.6%
    Russell Midcap® Value Index
    12.6%
  • Consumer Staples

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

    C&B Mid Cap Value
    Russell Midcap® Value Index
    4.2%
  • Financials

    C&B Mid Cap Value
    25.1%
    Russell Midcap® Value Index
    16.0%
  • Health Care

    C&B Mid Cap Value
    11.2%
    Russell Midcap® Value Index
    7.4%
  • Industrials

    C&B Mid Cap Value
    26.3%
    Russell Midcap® Value Index
    17.7%
  • Information Technology

    C&B Mid Cap Value
    7.9%
    Russell Midcap® Value Index
    9.5%
  • Materials

    C&B Mid Cap Value
    4.7%
    Russell Midcap® Value Index
    7.7%
  • Real Estate

    C&B Mid Cap Value
    1.0%
    Russell Midcap® Value Index
    9.8%
  • Utilities

    C&B Mid Cap Value
    2.1%
    Russell Midcap® Value Index
    7.2%
  • Cash

    C&B Mid Cap Value
    4.2%
    Russell Midcap® Value Index
Source: Factset and Russell®

Market Commentary

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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 Mid Cap Value Strategy returned 12.62% gross of fees (12.42% net of fees), slightly underperforming the Russell Midcap® Value Index, which returned 13.05%.

Additional Cooke & Bieler Mid Cap Value Disclosures