SMID Cap Value Q1 2021


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40 to 50

companies in our fully invested, concentrated portfolio

17

year track record

$424

million SMID Cap Value assets under management as of 3/31/2021

104%

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 1 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 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**
12.1% 8.8x 2.9x 15.8x 14.4x
6.9% 6.0x 3.5x 22.0x -
ROC 5 Year Avg 12.1% 6.9%
Cash Interest Coverage 8.8x 6.0x
Debt/EBITDA 2.9x 3.5x
Forecasted P/E** 15.8x 22.0x
P/Normalized Earnings** 14.4x -
Period Ending: 3.31.2021 * 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
47 0.8 - 15.6 6.0 43%
1,952 0.05 - 31.6 6.8 -
# Holdings 47 1,952
Market Cap ($B) Range 0.8 - 15.6 0.05 - 31.6
Market Cap ($B) Wtd Avg 6.0 6.8
Annual Turnover 43% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago 3.9%
Essent Group 3.4%
Gildan Activewear 3.4%
Arrow Electronics 3.3%
AerCap 3.0%
American Woodmark 2.9%
Schweitzer-Mauduit 2.8%
BWX Technologies 2.7%
Integra LifeSciences 2.7%
PGT Innovations 2.6%

Top 10 Holdings1

Winnebago 3.9%
Essent Group 3.4%
Gildan Activewear 3.4%
Arrow Electronics 3.3%
AerCap 3.0%
American Woodmark 2.9%
Schweitzer-Mauduit 2.8%
BWX Technologies 2.7%
Integra LifeSciences 2.7%
PGT Innovations 2.6%

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
    17.0%
    Russell 2500™ Value Index
    14.3%
  • Consumer Staples

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.4%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.0%
  • Financials

    C&B SMID Cap Value
    18.3%
    Russell 2500™ Value Index
    21.2%
  • Health Care

    C&B SMID Cap Value
    10.4%
    Russell 2500™ Value Index
    6.2%
  • Industrials

    C&B SMID Cap Value
    31.7%
    Russell 2500™ Value Index
    18.3%
  • Information Technology

    C&B SMID Cap Value
    10.1%
    Russell 2500™ Value Index
    8.3%
  • Materials

    C&B SMID Cap Value
    8.6%
    Russell 2500™ Value Index
    7.0%
  • Real Estate

    C&B SMID Cap Value
    Russell 2500™ Value Index
    10.5%
  • Utilities

    C&B SMID Cap Value
    1.5%
    Russell 2500™ Value Index
    3.7%
  • Cash

    C&B SMID Cap Value
    2.4%
    Russell 2500™ 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 SMID Cap Value Strategy returned 14.83% gross of fees (14.58% net of fees), underperforming the Russell 2500™ Value Index, which returned 16.83%.

Additional Cooke & Bieler SMID Cap Value Disclosures