Large Cap Value Q3 2021


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40 to 50

companies in our fully invested, concentrated portfolio

44

year track record

$4.0

billion Large Cap Value assets under management as of 9/30/2021

106%

upside market capture ratio since 2000

88%

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

Large Cap Value

Quarter 3 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® 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 Large Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Large Cap Value
  • Russell 1000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E** P/Normalized Earnings**
12.6% 11.0x 2.3x 14.0x 14.6x
10.1% 9.1x 2.7x 16.9x -
ROC 5 Year Avg 12.6% 10.1%
Cash Interest Coverage 11.0x 9.1x
Debt/EBITDA 2.3x 2.7x
Forecasted P/E** 14.0x 16.9x
P/Normalized Earnings** 14.6x -
Period Ending: 9.30.2021 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Large Cap Value
  • Russell 1000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) Wtd Avg Annual Turnover
50 6.0 - 618.7 89.9 36%
848 0.5 - 1,784.9 156.0 -
# Holdings 50 848
Market Cap ($B) Range 6.0 - 618.7 0.5 - 1,784.9
Market Cap ($B) Wtd Avg 89.9 156.0
Annual Turnover 36% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.5%
AerCap 3.2%
Brookfield Asset Management 3.1%
Leidos 3.1%
Arch Capital 3.0%
Johnson & Johnson 2.7%
Fidelity National Financial 2.7%
Charles Schwab 2.7%
Gildan Activewear 2.6%
Becton Dickinson 2.5%

Top 10 Holdings1

Arrow Electronics 3.5%
AerCap 3.2%
Brookfield Asset Management 3.1%
Leidos 3.1%
Arch Capital 3.0%
Johnson & Johnson 2.7%
Fidelity National Financial 2.7%
Charles Schwab 2.7%
Gildan Activewear 2.6%
Becton Dickinson 2.5%

Sector Weights1

  • C&B Large Cap Value
  • Russell 1000® Value Index
  • Communication Services

    C&B Large Cap Value
    7.1%
    Russell 1000® Value Index
    8.3%
  • Consumer Discretionary

    C&B Large Cap Value
    5.8%
    Russell 1000® Value Index
    5.6%
  • Consumer Staples

    C&B Large Cap Value
    7.2%
    Russell 1000® Value Index
    7.1%
  • Energy

    C&B Large Cap Value
    2.8%
    Russell 1000® Value Index
    5.1%
  • Financials

    C&B Large Cap Value
    31.0%
    Russell 1000® Value Index
    21.4%
  • Health Care

    C&B Large Cap Value
    14.1%
    Russell 1000® Value Index
    17.3%
  • Industrials

    C&B Large Cap Value
    18.8%
    Russell 1000® Value Index
    11.6%
  • Information Technology

    C&B Large Cap Value
    6.7%
    Russell 1000® Value Index
    10.2%
  • Materials

    C&B Large Cap Value
    1.0%
    Russell 1000® Value Index
    3.6%
  • Real Estate

    C&B Large Cap Value
    0.8%
    Russell 1000® Value Index
    4.7%
  • Utilities

    C&B Large Cap Value
    2.2%
    Russell 1000® Value Index
    4.9%
  • Cash

    C&B Large Cap Value
    2.5%
    Russell 1000® 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 Large Cap Value Strategy performed mostly in line with the Index in the third quarter, ending the period slightly behind on a relative basis and returning -0.90% gross of fees (-1.06% net of fees) against -0.78% for the Russell 1000® Value Index.

Additional Cooke & Bieler Large Cap Value Disclosures