Mid Cap Value Q4 2023


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40 to 50

companies in our fully invested, concentrated portfolio

$2.4 to $47.0

billion market capitalization range at initial purchase**

25

year track record

$3.8

billion Mid Cap Value assets under management as of 12/31/2023

$6.0

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

    • 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 4 2023

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell Midcap® Value Index
Returns as of 12.31.2023. 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 (Wtd. Harm. Avg.) P/Normalized Earnings (Wtd. Harm. Avg.)
11.0% 5.5x 3.4x 14.0x 12.8x
10.1% 6.2x 3.0x 17.1x -
ROC 5 Year Avg 11.0% 10.1%
Cash Interest Coverage 5.5x 6.2x
Debt/EBITDA 3.4x 3.0x
Forecasted P/E (Wtd. Harm. Avg.) 14.0x 17.1x
P/Normalized Earnings (Wtd. Harm. Avg.) 12.8x -
Period Ending: 12.31.2023 * 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
49 1.6 - 61.7 15.2 26%
703 0.3 - 73.3 23.0 -
# Holdings 49 703
Market Cap ($B) Range 1.6 - 61.7 0.3 - 73.3
Market Cap ($B) (Wtd. Avg.) 15.2 23.0
Annual Turnover 26% -
Source: FactSet and Russell®

Top 10 Holdings1

AerCap 4.0%
Open Text 3.0%
Helen of Troy 2.9%
Fidelity National Financial 2.8%
State Street 2.6%
Globe Life 2.6%
Omnicom 2.5%
Gildan Activewear 2.4%
TE Connectivity 2.4%
Teleflex 2.3%

Top 10 Holdings1

AerCap 4.0%
Open Text 3.0%
Helen of Troy 2.9%
Fidelity National Financial 2.8%
State Street 2.6%
Globe Life 2.6%
Omnicom 2.5%
Gildan Activewear 2.4%
TE Connectivity 2.4%
Teleflex 2.3%

Sector Weights1

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

    C&B Mid Cap Value
    4.3%
    Russell Midcap® Value Index
    3.2%
  • Consumer Discretionary

    C&B Mid Cap Value
    16.4%
    Russell Midcap® Value Index
    9.4%
  • Consumer Staples

    C&B Mid Cap Value
    1.1%
    Russell Midcap® Value Index
    3.7%
  • Energy

    C&B Mid Cap Value
    1.6%
    Russell Midcap® Value Index
    5.2%
  • Financials

    C&B Mid Cap Value
    23.4%
    Russell Midcap® Value Index
    17.6%
  • Health Care

    C&B Mid Cap Value
    11.7%
    Russell Midcap® Value Index
    6.8%
  • Industrials

    C&B Mid Cap Value
    21.9%
    Russell Midcap® Value Index
    19.1%
  • Information Technology

    C&B Mid Cap Value
    9.0%
    Russell Midcap® Value Index
    9.5%
  • Materials

    C&B Mid Cap Value
    Russell Midcap® Value Index
    7.6%
  • Real Estate

    C&B Mid Cap Value
    3.3%
    Russell Midcap® Value Index
    10.6%
  • Utilities

    C&B Mid Cap Value
    2.0%
    Russell Midcap® Value Index
    7.2%
  • Cash

    C&B Mid Cap Value
    5.3%
    Russell Midcap® Value Index
Source: FactSet and Russell®

Strategy Commentary

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The U.S. stock market advanced sharply during the fourth quarter with all major indices posting double-digit returns.

Cooke & Bieler’s Mid Cap Value Strategy generated strong absolute and relative results in the final quarter of the year, returning 12.94% gross of fees (12.74% net of fees) against a 12.11% return for the Russell Midcap® Value Index.

Additional Cooke & Bieler Mid Cap Value Disclosures