Concentrated Value Q1 2022


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15 to 25

companies in our fully invested, concentrated portfolio

6

year track record

$750

million CV assets under management as of 3/31/2022

135%

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

105%

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 1 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 3.31.2022 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**
9.0% 11.9x 2.2x 12.6x 13.3x
7.2% 7.0x 2.7x 16.0x -
ROC 5 Year Avg 9.0% 7.2%
Cash Interest Coverage 11.9x 7.0x
Debt/EBITDA 2.2x 2.7x
Forecasted P/E** 12.6x 16.0x
P/Normalized Earnings** 13.3x -
Period Ending: 3.31.2022 * 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 1.8 - 465.9 71.8 28%
2,284 0.01 - 1,849.3 158.5 -
# Holdings 20 2,284
Market Cap ($B) Range 1.8 - 465.9 0.01 - 1,849.3
Market Cap ($B) Wtd Avg 71.8 158.5
Annual Turnover 28% -
Source: Factset and Russell®

Top 10 Holdings1

Arch Capital 8.5%
Brookfield Asset Management 8.1%
Arrow Electronics 6.3%
Gildan Activewear 5.7%
Johnson & Johnson 5.4%
Chubb 5.1%
Becton Dickinson 5.1%
Progressive 5.0%
London Stock Exchange 4.8%
AerCap 4.5%

Top 10 Holdings1

Arch Capital 8.5%
Brookfield Asset Management 8.1%
Arrow Electronics 6.3%
Gildan Activewear 5.7%
Johnson & Johnson 5.4%
Chubb 5.1%
Becton Dickinson 5.1%
Progressive 5.0%
London Stock Exchange 4.8%
AerCap 4.5%

Sector Weights1

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

    C&B Concentrated Value
    Russell 3000® Value Index
    6.9%
  • Consumer Discretionary

    C&B Concentrated Value
    12.7%
    Russell 3000® Value Index
    5.1%
  • Consumer Staples

    C&B Concentrated Value
    4.3%
    Russell 3000® Value Index
    7.1%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    7.3%
  • Financials

    C&B Concentrated Value
    38.7%
    Russell 3000® Value Index
    21.0%
  • Health Care

    C&B Concentrated Value
    19.0%
    Russell 3000® Value Index
    17.4%
  • Industrials

    C&B Concentrated Value
    11.1%
    Russell 3000® Value Index
    11.2%
  • Information Technology

    C&B Concentrated Value
    10.3%
    Russell 3000® Value Index
    9.0%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    4.1%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.4%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    5.4%
  • Cash

    C&B Concentrated Value
    3.9%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

Stocks turned in their worst performance since the onset of the pandemic two years ago as investors processed a seeming tsunami of bad news and pushed all major indices into negative territory. The Russian invasion of Ukraine signaled not just the largest European war in 75 years, but perhaps the most aggressive sanctions regime in history.

Amidst another tumultuous quarter, Cooke & Bieler’s Concentrated Value Strategy underperformed the Russell 3000® Value Index, posting -3.60% gross of fees (-3.81% net of fees) against a -0.85% return for the benchmark.

Additional Cooke & Bieler Concentrated Value Disclosures