Large Cap Value Q2 2022


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40 to 50

companies in our fully invested, concentrated portfolio

45

year track record

$3.5

billion Large Cap Value assets under management as of 6/30/2022

105%

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 2 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 1000® Value Index
Annualized Returns As of 6.30.2022 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 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**
12.7% 12.8x 2.6x 12.5x 12.2x
9.9% 9.1x 2.7x 13.5x -
ROC 5 Year Avg 12.7% 9.9%
Cash Interest Coverage 12.8x 9.1x
Debt/EBITDA 2.6x 2.7x
Forecasted P/E** 12.5x 13.5x
P/Normalized Earnings** 12.2x -
Period Ending: 6.30.2022 * 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 2.6 - 1,435.6 98.8 35%
859 0.3 - 1,441.0 145.0 -
# Holdings 50 859
Market Cap ($B) Range 2.6 - 1,435.6 0.3 - 1,441.0
Market Cap ($B) Wtd Avg 98.8 145.0
Annual Turnover 35% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.4%
Johnson & Johnson 3.1%
Brookfield Asset Management 3.0%
Arch Capital 2.9%
Verizon Communications 2.7%
Progressive 2.6%
London Stock Exchange 2.6%
State Street 2.6%
Stanley Black & Decker 2.4%
Unilever 2.4%

Top 10 Holdings1

Arrow Electronics 3.4%
Johnson & Johnson 3.1%
Brookfield Asset Management 3.0%
Arch Capital 2.9%
Verizon Communications 2.7%
Progressive 2.6%
London Stock Exchange 2.6%
State Street 2.6%
Stanley Black & Decker 2.4%
Unilever 2.4%

Sector Weights1

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

    C&B Large Cap Value
    7.9%
    Russell 1000® Value Index
    8.8%
  • Consumer Discretionary

    C&B Large Cap Value
    9.2%
    Russell 1000® Value Index
    5.7%
  • Consumer Staples

    C&B Large Cap Value
    8.9%
    Russell 1000® Value Index
    7.3%
  • Energy

    C&B Large Cap Value
    2.0%
    Russell 1000® Value Index
    7.2%
  • Financials

    C&B Large Cap Value
    33.1%
    Russell 1000® Value Index
    19.5%
  • Health Care

    C&B Large Cap Value
    14.6%
    Russell 1000® Value Index
    17.2%
  • Industrials

    C&B Large Cap Value
    12.3%
    Russell 1000® Value Index
    9.9%
  • Information Technology

    C&B Large Cap Value
    5.6%
    Russell 1000® Value Index
    9.0%
  • Materials

    C&B Large Cap Value
    Russell 1000® Value Index
    4.2%
  • Real Estate

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

    C&B Large Cap Value
    2.1%
    Russell 1000® Value Index
    6.0%
  • Cash

    C&B Large Cap Value
    4.3%
    Russell 1000® Value Index
Source: Factset and Russell®

Market Commentary

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The investing environment went from challenging to nearly universally negative during the second quarter as markets struggled to digest rising interest rates, unexpectedly high levels of inflation, and signs of economic deterioration. This troublesome combination caused sentiment to turn overwhelmingly negative as it resurrected unhappy memories of the stubborn stagflation that hampered stocks much of the 1970s.

Cooke & Bieler’s Large Cap Value Strategy provided some downside protection during the difficult market environment of the second quarter, returning -11.06% gross of fees (-11.22% net of fees) against a -12.21% return for the Russell 1000® Value Index.

Additional Cooke & Bieler Large Cap Value Disclosures