Mid Cap Value Q2 2022

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 Mid Cap Value Strategy provided some downside protection during the difficult market environment of the second quarter, returning -11.61% gross of fees (-11.78% net of fees) against a -14.68% return for the Russell Midcap® Value Index.

40 to 50

companies in our fully invested, concentrated portfolio

24

year track record

$3.7

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

103%

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

Mid Cap Value

Quarter 2 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® Value Index
Returns as of 6.30.2022. Returns greater than one year are annualized. Source: FactSet and Russell® Past performance is not indicative of future results. All investing involves risk, including loss of principal. 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**
13.9% 10.8x 2.5x 12.0x 11.7x
9.5% 8.2x 2.8x 13.7x -
ROC 5 Year Avg 13.9% 9.5%
Cash Interest Coverage 10.8x 8.2x
Debt/EBITDA 2.5x 2.8x
Forecasted P/E** 12.0x 13.7x
P/Normalized Earnings** 11.7x -
Period Ending: 6.30.2022 * 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 1.9 - 68.0 14.6 31%
706 0.3 - 44.2 18.3 -
# Holdings 50 706
Market Cap ($B) Range 1.9 - 68.0 0.3 - 44.2
Market Cap ($B) Wtd Avg 14.6 18.3
Annual Turnover 31% -
Source: FactSet and Russell®

Top 10 Holdings1

Arrow Electronics 3.5%
Helen of Troy 3.2%
Arch Capital 2.9%
Globe Life 2.9%
Progressive 2.8%
Gentex 2.8%
FirstCash 2.7%
AerCap 2.7%
State Street 2.6%
Fidelity National Financial 2.5%

Top 10 Holdings1

Arrow Electronics 3.5%
Helen of Troy 3.2%
Arch Capital 2.9%
Globe Life 2.9%
Progressive 2.8%
Gentex 2.8%
FirstCash 2.7%
AerCap 2.7%
State Street 2.6%
Fidelity National Financial 2.5%

Sector Weights1

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

    C&B Mid Cap Value
    4.1%
    Russell Midcap® Value Index
    3.6%
  • Consumer Discretionary

    C&B Mid Cap Value
    16.8%
    Russell Midcap® Value Index
    9.5%
  • Consumer Staples

    C&B Mid Cap Value
    3.0%
    Russell Midcap® Value Index
    4.2%
  • Energy

    C&B Mid Cap Value
    2.0%
    Russell Midcap® Value Index
    5.0%
  • Financials

    C&B Mid Cap Value
    24.9%
    Russell Midcap® Value Index
    17.9%
  • Health Care

    C&B Mid Cap Value
    13.5%
    Russell Midcap® Value Index
    7.4%
  • Industrials

    C&B Mid Cap Value
    23.0%
    Russell Midcap® Value Index
    14.4%
  • Information Technology

    C&B Mid Cap Value
    8.6%
    Russell Midcap® Value Index
    9.4%
  • Materials

    C&B Mid Cap Value
    Russell Midcap® Value Index
    7.5%
  • Real Estate

    C&B Mid Cap Value
    Russell Midcap® Value Index
    12.1%
  • Utilities

    C&B Mid Cap Value
    2.1%
    Russell Midcap® Value Index
    9.0%
  • Cash

    C&B Mid Cap Value
    1.9%
    Russell Midcap® Value Index
Source: FactSet and Russell®

Additional Cooke & Bieler Mid Cap Value Disclosures