Concentrated Value Q3 2022


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15 to 25

companies in our fully invested, concentrated portfolio

$1.7

billion minimum market capitalization at initial purchase**

7

year track record

$1.0

billion CV assets under management as of 9/30/2022

$2.0

billion AUM capacity, assuming no net inflows into other strategies

  • 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 3 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® Value Index
Annualized Returns As of 9.30.2022 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 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 (Wtd. Harm. Avg.) P/Normalized Earnings (Wtd. Harm. Avg.)
13.8% 17.5x 3.2x 10.7x 9.6x
7.0% 6.5x 2.9x 13.1x -
ROC 5 Year Avg 13.8% 7.0%
Cash Interest Coverage 17.5x 6.5x
Debt/EBITDA 3.2x 2.9x
Forecasted P/E (Wtd. Harm. Avg.) 10.7x 13.1x
P/Normalized Earnings (Wtd. Harm. Avg.) 9.6x -
Period Ending: 9.30.2022 * 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 1.7 - 429.5 49.6 36%
2,249 0.01 - 1,257.5 126.8 -
# Holdings 20 2,249
Market Cap ($B) Range 1.7 - 429.5 0.01 - 1,257.5
Market Cap ($B) (Wtd. Avg.) 49.6 126.8
Annual Turnover 36% -
Source: Factset and Russell®

Top 10 Holdings1

Brookfield Asset Management 8.0%
Arch Capital 7.2%
State Street 6.6%
AerCap 6.6%
Arrow Electronics 6.2%
Medtronic 6.1%
TE Connectivity 5.6%
Gildan Activewear 5.4%
Progressive 5.4%
Chubb 5.0%

Top 10 Holdings1

Brookfield Asset Management 8.0%
Arch Capital 7.2%
State Street 6.6%
AerCap 6.6%
Arrow Electronics 6.2%
Medtronic 6.1%
TE Connectivity 5.6%
Gildan Activewear 5.4%
Progressive 5.4%
Chubb 5.0%

Sector Weights1

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

    C&B Concentrated Value
    Russell 3000® Value Index
    7.7%
  • Consumer Discretionary

    C&B Concentrated Value
    14.1%
    Russell 3000® Value Index
    6.2%
  • Consumer Staples

    C&B Concentrated Value
    Russell 3000® Value Index
    7.0%
  • Energy

    C&B Concentrated Value
    Russell 3000® Value Index
    7.7%
  • Financials

    C&B Concentrated Value
    40.6%
    Russell 3000® Value Index
    20.5%
  • Health Care

    C&B Concentrated Value
    14.3%
    Russell 3000® Value Index
    17.0%
  • Industrials

    C&B Concentrated Value
    16.7%
    Russell 3000® Value Index
    10.2%
  • Information Technology

    C&B Concentrated Value
    11.9%
    Russell 3000® Value Index
    8.6%
  • Materials

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

    C&B Concentrated Value
    Russell 3000® Value Index
    5.2%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    5.9%
  • Cash

    C&B Concentrated Value
    2.4%
    Russell 3000® Value Index
Source: Factset and Russell®

Market Commentary

Download Commentary

U.S. equity indices posted their third consecutive quarter of negative returns. Bonds offered little sanctuary as Fed officials raised rates for the fifth time this year and 10-year Treasury yields spiked from 3% to more than 4% before settling around 3.8%. Persistently high inflation and rising interest rates united investors in their pessimism while seemingly dividing their assessment of which ostensible safe haven was best.

Cooke & Bieler’s Concentrated Value Strategy returned -10.21% gross of fees (-10.43% net of fees), underperforming the Russell 3000® Value Index which returned -5.56% during the third quarter.

Additional Cooke & Bieler Concentrated Value Disclosures