Small Cap Value Q3 2022


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40 to 60

companies in our fully invested, concentrated portfolio

$0.45 to $6.4

billion market capitalization range at initial purchase**

14

year track record

$1.5

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

Closed

to new investors as of December 31, 2019

  • 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

Small Cap Value

Quarter 3 2022

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® 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 Small Cap Value Performance Disclosures

Quality Characteristics1

  • C&B Small Cap Value
  • Russell 2000® Value Index*
ROC 5 Year Avg Cash Interest Coverage Debt/EBITDA Forecasted P/E (Wtd. Harm. Avg.) P/Normalized Earnings (Wtd. Harm. Avg.)
11.3% 7.7x 3.3x 10.4x 9.0x
4.8% 4.5x 3.2x 16.4x -
ROC 5 Year Avg 11.3% 4.8%
Cash Interest Coverage 7.7x 4.5x
Debt/EBITDA 3.3x 3.2x
Forecasted P/E (Wtd. Harm. Avg.) 10.4x 16.4x
P/Normalized Earnings (Wtd. Harm. Avg.) 9.0x -
Period Ending: 9.30.2022 * Median ** Weighted Harmonic Mean Source: Factset and Russell®

Portfolio Attributes1

  • C&B Small Cap Value
  • Russell 2000® Value Index
# Holdings Market Cap ($B) Range Market Cap ($B) (Wtd. Avg.) Annual Turnover
45 0.3 - 8.9 3.3 20%
1,394 0.01 - 10.7 2.1 -
# Holdings 45 1,394
Market Cap ($B) Range 0.3 - 8.9 0.01 - 10.7
Market Cap ($B) (Wtd. Avg.) 3.3 2.1
Annual Turnover 20% -
Source: Factset and Russell®

Top 10 Holdings1

Winnebago 4.4%
WSFS Financial 3.7%
PGT Innovations 3.6%
Essent 3.3%
Umpqua 3.2%
Glacier Bancorp 3.1%
Gildan Activewear 3.1%
IAA 3.0%
RenaissanceRe 3.0%
FirstCash 3.0%

Top 10 Holdings1

Winnebago 4.4%
WSFS Financial 3.7%
PGT Innovations 3.6%
Essent 3.3%
Umpqua 3.2%
Glacier Bancorp 3.1%
Gildan Activewear 3.1%
IAA 3.0%
RenaissanceRe 3.0%
FirstCash 3.0%

Sector Weights1

  • C&B Small Cap Value
  • Russell 2000® Value Index
  • Communication Services

    C&B Small Cap Value
    Russell 2000® Value Index
    3.0%
  • Consumer Discretionary

    C&B Small Cap Value
    20.5%
    Russell 2000® Value Index
    9.6%
  • Consumer Staples

    C&B Small Cap Value
    1.2%
    Russell 2000® Value Index
    2.7%
  • Energy

    C&B Small Cap Value
    1.7%
    Russell 2000® Value Index
    5.8%
  • Financials

    C&B Small Cap Value
    23.1%
    Russell 2000® Value Index
    29.1%
  • Health Care

    C&B Small Cap Value
    10.1%
    Russell 2000® Value Index
    12.1%
  • Industrials

    C&B Small Cap Value
    30.5%
    Russell 2000® Value Index
    12.3%
  • Information Technology

    C&B Small Cap Value
    5.7%
    Russell 2000® Value Index
    5.9%
  • Materials

    C&B Small Cap Value
    2.1%
    Russell 2000® Value Index
    3.7%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    10.8%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    5.1%
  • Cash

    C&B Small Cap Value
    5.0%
    Russell 2000® 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 Small Cap Value Strategy returned -7.05% gross of fees (-7.29% net of fees), underperforming the Russell 2000® Value Index which returned -4.61% during the third quarter.

Additional Cooke & Bieler Small Cap Value Disclosures