SMID Cap Value Q2 2021


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40 to 50

companies in our fully invested, concentrated portfolio

17

year track record

$438

million SMID Cap Value assets under management as of 6/30/2021

103%

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 2 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ Value Index
Annualized Returns As of 6.30.2021 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**
12.0% 9.6x 2.8x 15.0x 14.0x
6.6% 6.6x 3.1x 20.9x -
ROC 5 Year Avg 12.0% 6.6%
Cash Interest Coverage 9.6x 6.6x
Debt/EBITDA 2.8x 3.1x
Forecasted P/E** 15.0x 20.9x
P/Normalized Earnings** 14.0x -
Period Ending: 6.30.2021 * 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
45 1.1 - 15.7 6.3 41%
1,814 0.03 - 25.5 6.9 -
# Holdings 45 1,814
Market Cap ($B) Range 1.1 - 15.7 0.03 - 25.5
Market Cap ($B) Wtd Avg 6.3 6.9
Annual Turnover 41% -
Source: Factset and Russell®

Top 10 Holdings1

Gildan Activewear 3.9%
Helen of Troy 3.6%
Winnebago 3.4%
Arrow Electronics 3.4%
Colfax 3.1%
Hill-Rom 2.9%
IAA 2.8%
American Woodmark 2.8%
FirstCash 2.8%
Syneos Health 2.6%

Top 10 Holdings1

Gildan Activewear 3.9%
Helen of Troy 3.6%
Winnebago 3.4%
Arrow Electronics 3.4%
Colfax 3.1%
Hill-Rom 2.9%
IAA 2.8%
American Woodmark 2.8%
FirstCash 2.8%
Syneos Health 2.6%

Sector Weights1

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

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.3%
  • Consumer Discretionary

    C&B SMID Cap Value
    16.5%
    Russell 2500™ Value Index
    10.7%
  • Consumer Staples

    C&B SMID Cap Value
    1.0%
    Russell 2500™ Value Index
    3.2%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.8%
  • Financials

    C&B SMID Cap Value
    19.6%
    Russell 2500™ Value Index
    20.1%
  • Health Care

    C&B SMID Cap Value
    11.5%
    Russell 2500™ Value Index
    9.0%
  • Industrials

    C&B SMID Cap Value
    30.1%
    Russell 2500™ Value Index
    17.3%
  • Information Technology

    C&B SMID Cap Value
    9.9%
    Russell 2500™ Value Index
    9.0%
  • Materials

    C&B SMID Cap Value
    5.8%
    Russell 2500™ Value Index
    6.7%
  • Real Estate

    C&B SMID Cap Value
    Russell 2500™ Value Index
    12.0%
  • Utilities

    C&B SMID Cap Value
    1.5%
    Russell 2500™ Value Index
    3.8%
  • Cash

    C&B SMID Cap Value
    4.2%
    Russell 2500™ Value Index
Source: Factset and Russell®

Market Commentary

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U.S. equity markets advanced for the fifth consecutive quarter, posting solid gains in the second quarter led by large cap stocks. Though all major indices were up, underlying return composition diverged wildly across style and size.

Cooke & Bieler’s SMID Cap Value Strategy lagged the benchmark in the second quarter, returning 2.29% gross of fees (2.07% net of fees) against a 5.00% return for the Russell 2500™ Value Index.

Additional Cooke & Bieler SMID Cap Value Disclosures