SMID Cap Value Q2 2022


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40 to 50

companies in our fully invested, concentrated portfolio

18

year track record

$401

million SMID Cap Value assets under management as of 6/30/2022

103%

upside market capture ratio since inception (1/1/04)

97%

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 2 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2500™ Value Index
Annualized Returns As of 6.30.2022 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 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**
11.3% 7.8x 3.2x 10.9x 10.6x
6.0% 5.5x 3.0x 14.3x -
ROC 5 Year Avg 11.3% 6.0%
Cash Interest Coverage 7.8x 5.5x
Debt/EBITDA 3.2x 3.0x
Forecasted P/E** 10.9x 14.3x
P/Normalized Earnings** 10.6x -
Period Ending: 6.30.2022 * 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
47 0.7 - 17.1 6.1 25%
1,843 0.01 - 39.0 5.8 -
# Holdings 47 1,843
Market Cap ($B) Range 0.7 - 17.1 0.01 - 39.0
Market Cap ($B) Wtd Avg 6.1 5.8
Annual Turnover 25% -
Source: Factset and Russell®

Top 10 Holdings1

Globe Life 3.6%
Arrow Electronics 3.4%
Helen of Troy 3.2%
Plexus 3.2%
Arch Capital 2.9%
Gildan Activewear 2.8%
Gentex 2.8%
Winnebago 2.8%
Essent 2.7%
Perrigo 2.6%

Top 10 Holdings1

Globe Life 3.6%
Arrow Electronics 3.4%
Helen of Troy 3.2%
Plexus 3.2%
Arch Capital 2.9%
Gildan Activewear 2.8%
Gentex 2.8%
Winnebago 2.8%
Essent 2.7%
Perrigo 2.6%

Sector Weights1

  • C&B SMID Cap Value
  • Russell 2500™ Value Index
  • Communication Services

    C&B SMID Cap Value
    Russell 2500™ Value Index
    3.3%
  • Consumer Discretionary

    C&B SMID Cap Value
    19.9%
    Russell 2500™ Value Index
    10.6%
  • Consumer Staples

    C&B SMID Cap Value
    1.2%
    Russell 2500™ Value Index
    3.0%
  • Energy

    C&B SMID Cap Value
    Russell 2500™ Value Index
    4.1%
  • Financials

    C&B SMID Cap Value
    20.0%
    Russell 2500™ Value Index
    21.7%
  • Health Care

    C&B SMID Cap Value
    12.6%
    Russell 2500™ Value Index
    9.2%
  • Industrials

    C&B SMID Cap Value
    26.4%
    Russell 2500™ Value Index
    16.5%
  • Information Technology

    C&B SMID Cap Value
    11.1%
    Russell 2500™ Value Index
    8.8%
  • Materials

    C&B SMID Cap Value
    2.2%
    Russell 2500™ Value Index
    5.8%
  • Real Estate

    C&B SMID Cap Value
    Russell 2500™ Value Index
    12.5%
  • Utilities

    C&B SMID Cap Value
    2.1%
    Russell 2500™ Value Index
    4.4%
  • Cash

    C&B SMID Cap Value
    4.6%
    Russell 2500™ 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 SMID Cap Value Strategy provided some downside protection during the difficult market environment of the second quarter, returning -10.41% gross of fees (-10.62% net of fees) against a -15.39% return for the Russell 2500 Value Index.

Additional Cooke & Bieler SMID Cap Value Disclosures