SMID Cap Value Q3 2021


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40 to 50

companies in our fully invested, concentrated portfolio

17

year track record

$412

million SMID Cap Value assets under management as of 9/30/2021

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 3 2021

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ 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 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**
12.3% 8.9x 2.7x 14.0x 13.0x
6.6% 6.5x 2.8x 18.5x -
ROC 5 Year Avg 12.3% 6.6%
Cash Interest Coverage 8.9x 6.5x
Debt/EBITDA 2.7x 2.8x
Forecasted P/E** 14.0x 18.5x
P/Normalized Earnings** 13.0x -
Period Ending: 9.30.2021 * 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 - 15.1 6.4 47%
1,865 0.03 - 31.7 7.0 -
# Holdings 45 1,865
Market Cap ($B) Range 1.1 - 15.1 0.03 - 31.7
Market Cap ($B) Wtd Avg 6.4 7.0
Annual Turnover 47% -
Source: Factset and Russell®

Top 10 Holdings1

Helen of Troy 3.9%
Gildan Activewear 3.7%
Winnebago 3.6%
Arrow Electronics 3.3%
AerCap 2.9%
Colfax 2.9%
Gentex 2.9%
IAA 2.9%
Arch Capital 2.7%
FirstCash 2.7%

Top 10 Holdings1

Helen of Troy 3.9%
Gildan Activewear 3.7%
Winnebago 3.6%
Arrow Electronics 3.3%
AerCap 2.9%
Colfax 2.9%
Gentex 2.9%
IAA 2.9%
Arch Capital 2.7%
FirstCash 2.7%

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
    18.9%
    Russell 2500™ Value Index
    10.1%
  • Consumer Staples

    C&B SMID Cap Value
    1.1%
    Russell 2500™ Value Index
    3.2%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    5.2%
  • Financials

    C&B SMID Cap Value
    19.1%
    Russell 2500™ Value Index
    20.7%
  • Health Care

    C&B SMID Cap Value
    10.8%
    Russell 2500™ Value Index
    9.3%
  • Industrials

    C&B SMID Cap Value
    29.2%
    Russell 2500™ Value Index
    16.9%
  • Information Technology

    C&B SMID Cap Value
    9.8%
    Russell 2500™ Value Index
    8.9%
  • Materials

    C&B SMID Cap Value
    5.5%
    Russell 2500™ Value Index
    6.6%
  • Real Estate

    C&B SMID Cap Value
    Russell 2500™ Value Index
    12.2%
  • Utilities

    C&B SMID Cap Value
    1.9%
    Russell 2500™ Value Index
    3.8%
  • Cash

    C&B SMID Cap Value
    3.7%
    Russell 2500™ 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 SMID Cap Value Strategy slightly lagged the benchmark in the third quarter, posting a return of -2.42% gross of fees (-2.64% net of fees) versus -2.07% for the Russell 2500™ Value Index.

Additional Cooke & Bieler SMID Cap Value Disclosures