Mid Cap Value Q3 2022


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40 to 50

companies in our fully invested, concentrated portfolio

$2.9 to $46.5

billion market capitalization range at initial purchase**

24

year track record

$3.2

billion Mid Cap Value assets under management as of 9/30/2022

$6.6

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

    • 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 3 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® 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 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 (Wtd. Harm. Avg.) P/Normalized Earnings (Wtd. Harm. Avg.)
13.8% 9.8x 2.9x 11.0x 10.6x
9.6% 7.8x 2.8x 13.5x -
ROC 5 Year Avg 13.8% 9.6%
Cash Interest Coverage 9.8x 7.8x
Debt/EBITDA 2.9x 2.8x
Forecasted P/E (Wtd. Harm. Avg.) 11.0x 13.5x
P/Normalized Earnings (Wtd. Harm. Avg.) 10.6x -
Period Ending: 9.30.2022 * 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 1.8 - 68.0 13.9 29%
702 0.3 - 45.2 17.8 -
# Holdings 50 702
Market Cap ($B) Range 1.8 - 68.0 0.3 - 45.2
Market Cap ($B) (Wtd. Avg.) 13.9 17.8
Annual Turnover 29% -
Source: Factset and Russell®

Top 10 Holdings1

Arrow Electronics 3.3%
Arch Capital 3.3%
AerCap 3.0%
State Street 2.8%
Fidelity National Financial 2.7%
Gentex 2.6%
Gildan Activewear 2.6%
TE Connectivity 2.5%
Globe Life 2.5%
Progressive 2.5%

Top 10 Holdings1

Arrow Electronics 3.3%
Arch Capital 3.3%
AerCap 3.0%
State Street 2.8%
Fidelity National Financial 2.7%
Gentex 2.6%
Gildan Activewear 2.6%
TE Connectivity 2.5%
Globe Life 2.5%
Progressive 2.5%

Sector Weights1

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

    C&B Mid Cap Value
    4.4%
    Russell Midcap® Value Index
    3.4%
  • Consumer Discretionary

    C&B Mid Cap Value
    15.4%
    Russell Midcap® Value Index
    9.6%
  • Consumer Staples

    C&B Mid Cap Value
    2.3%
    Russell Midcap® Value Index
    4.1%
  • Energy

    C&B Mid Cap Value
    2.3%
    Russell Midcap® Value Index
    5.2%
  • Financials

    C&B Mid Cap Value
    25.5%
    Russell Midcap® Value Index
    18.4%
  • Health Care

    C&B Mid Cap Value
    12.4%
    Russell Midcap® Value Index
    7.3%
  • Industrials

    C&B Mid Cap Value
    22.2%
    Russell Midcap® Value Index
    15.1%
  • Information Technology

    C&B Mid Cap Value
    9.8%
    Russell Midcap® Value Index
    9.1%
  • Materials

    C&B Mid Cap Value
    Russell Midcap® Value Index
    7.3%
  • Real Estate

    C&B Mid Cap Value
    1.4%
    Russell Midcap® Value Index
    11.5%
  • Utilities

    C&B Mid Cap Value
    1.5%
    Russell Midcap® Value Index
    9.0%
  • Cash

    C&B Mid Cap Value
    2.5%
    Russell Midcap® Value Index
Source: Factset and Russell®

Market Commentary

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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 Mid Cap Value Strategy returned -9.77% gross of fees (-9.95% net of fees), underperforming the Russell Midcap® Value Index which returned -4.93% during the third quarter.

Additional Cooke & Bieler Mid Cap Value Disclosures