Concentrated Value Q3 2021


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15 to 25

companies in our fully invested, concentrated portfolio

6

year track record

$623

million CV assets under management as of 9/30/2021

138%

upside market capture ratio since inception (7/1/15)

101%

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 3 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 9.30.2021 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 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**
12.2% 10.5x 2.5x 14.3x 13.8x
7.2% 7.3x 2.8x 17.1x -
ROC 5 Year Avg 12.2% 7.2%
Cash Interest Coverage 10.5x 7.3x
Debt/EBITDA 2.5x 2.8x
Forecasted P/E** 14.3x 17.1x
P/Normalized Earnings** 13.8x -
Period Ending: 9.30.2021 * 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
20 2.4 - 425.1 65.3 55%
2,277 0.03 - 1,784.9 145.7 -
# Holdings 20 2,277
Market Cap ($B) Range 2.4 - 425.1 0.03 - 1,784.9
Market Cap ($B) Wtd Avg 65.3 145.7
Annual Turnover 55% -
Source: Factset and Russell®

Top 10 Holdings1

Arch Capital 8.0%
Brookfield Asset Management 7.1%
Gildan Activewear 6.6%
Progressive 5.9%
Arrow Electronics 5.6%
AerCap 5.3%
Chubb 5.2%
Helen of Troy 5.1%
Becton Dickinson 4.9%
IAA 4.9%

Top 10 Holdings1

Arch Capital 8.0%
Brookfield Asset Management 7.1%
Gildan Activewear 6.6%
Progressive 5.9%
Arrow Electronics 5.6%
AerCap 5.3%
Chubb 5.2%
Helen of Troy 5.1%
Becton Dickinson 4.9%
IAA 4.9%

Sector Weights1

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

    C&B Concentrated Value
    Russell 3000® Value Index
    8.0%
  • Consumer Discretionary

    C&B Concentrated Value
    15.4%
    Russell 3000® Value Index
    5.8%
  • Consumer Staples

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

    C&B Concentrated Value
    Russell 3000® Value Index
    5.2%
  • Financials

    C&B Concentrated Value
    34.2%
    Russell 3000® Value Index
    21.8%
  • Health Care

    C&B Concentrated Value
    15.5%
    Russell 3000® Value Index
    16.9%
  • Industrials

    C&B Concentrated Value
    18.0%
    Russell 3000® Value Index
    11.8%
  • Information Technology

    C&B Concentrated Value
    9.2%
    Russell 3000® Value Index
    9.9%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    3.7%
  • Real Estate

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

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

    C&B Concentrated Value
    2.9%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

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Following a breakneck advance through the first half of the year, U.S. equity indices turned in mixed results for the third quarter. The market’s tone shifted noticeably in September when investors faced increasing evidence that supply chain disruptions, rising input cost inflation, and labor shortages might negatively impact the near-term trajectory of the economic recovery.

Cooke & Bieler’s Concentrated Value Strategy significantly outperformed the benchmark in the third quarter, returning 2.60% gross of fees (2.39% net of fees) against a -0.93% return for the Russell 3000® Value Index.

Additional Cooke & Bieler Concentrated Value Disclosures