Mid Cap Value Q3 2021


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40 to 50

companies in our fully invested, concentrated portfolio

23

year track record

$3.7

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

103%

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 3 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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**
12.8% 10.5x 2.3x 14.1x 14.0x
9.6% 8.4x 2.8x 18.4x -
ROC 5 Year Avg 12.8% 9.6%
Cash Interest Coverage 10.5x 8.4x
Debt/EBITDA 2.3x 2.8x
Forecasted P/E** 14.1x 18.4x
P/Normalized Earnings** 14.0x -
Period Ending: 9.30.2021 * 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
50 1.1 - 52.9 12.9 42%
701 0.5 - 69.5 20.7 -
# Holdings 50 701
Market Cap ($B) Range 1.1 - 52.9 0.5 - 69.5
Market Cap ($B) Wtd Avg 12.9 20.7
Annual Turnover 42% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 3.9%
Arrow Electronics 3.4%
Gildan Activewear 3.4%
FirstCash 3.4%
Fidelity National Financial 3.3%
Leidos 3.1%
AerCap 3.1%
IAA 3.1%
Arch Capital 3.0%
Gentex 2.9%

Top 10 Holdings1

Helen of Troy 3.9%
Arrow Electronics 3.4%
Gildan Activewear 3.4%
FirstCash 3.4%
Fidelity National Financial 3.3%
Leidos 3.1%
AerCap 3.1%
IAA 3.1%
Arch Capital 3.0%
Gentex 2.9%

Sector Weights1

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

    C&B Mid Cap Value
    2.1%
    Russell Midcap® Value Index
    4.0%
  • Consumer Discretionary

    C&B Mid Cap Value
    17.2%
    Russell Midcap® Value Index
    10.7%
  • Consumer Staples

    C&B Mid Cap Value
    2.5%
    Russell Midcap® Value Index
    4.2%
  • Energy

    C&B Mid Cap Value
    1.8%
    Russell Midcap® Value Index
    5.2%
  • Financials

    C&B Mid Cap Value
    24.6%
    Russell Midcap® Value Index
    16.8%
  • Health Care

    C&B Mid Cap Value
    11.2%
    Russell Midcap® Value Index
    8.4%
  • Industrials

    C&B Mid Cap Value
    26.8%
    Russell Midcap® Value Index
    15.6%
  • Information Technology

    C&B Mid Cap Value
    7.9%
    Russell Midcap® Value Index
    9.8%
  • Materials

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

    C&B Mid Cap Value
    0.8%
    Russell Midcap® Value Index
    11.1%
  • Utilities

    C&B Mid Cap Value
    2.2%
    Russell Midcap® Value Index
    7.0%
  • Cash

    C&B Mid Cap Value
    0.8%
    Russell Midcap® 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 Mid Cap Value Strategy lagged the benchmark in the third quarter, posting a return of -1.85% gross of fees (-2.04% net of fees) versus -1.01% for the Russell Midcap® Value Index.

Additional Cooke & Bieler Mid Cap Value Disclosures