Concentrated Value Q4 2023


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15 to 25

companies in our fully invested, concentrated portfolio

$1.4

billion minimum market capitalization at initial purchase**

8

year track record

$1.4

billion CV assets under management as of 12/31/2023

$1.8

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 4 2023

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 3000® 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 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.)
13.2% 8.1x 2.9x 13.7x 12.2x
7.2% 5.4x 3.0x 16.9x -
ROC 5 Year Avg 13.2% 7.2%
Cash Interest Coverage 8.1x 5.4x
Debt/EBITDA 2.9x 3.0x
Forecasted P/E (Wtd. Harm. Avg.) 13.7x 16.9x
P/Normalized Earnings (Wtd. Harm. Avg.) 12.2x -
Period Ending: 12.31.2023 * 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
18 2.1 - 377.3 68.9 62%
2,280 0.0 - 773.4 130.8 -
# Holdings 18 2,280
Market Cap ($B) Range 2.1 - 377.3 0.0 - 773.4
Market Cap ($B) (Wtd. Avg.) 68.9 130.8
Annual Turnover 62% -
Source: FactSet and Russell®

Top 10 Holdings1

Brookfield 8.1%
AerCap 6.6%
Fidelity National Financial 6.5%
State Street 6.1%
Chubb 6.1%
Becton Dickinson 6.1%
Philip Morris 5.9%
Globe Life 5.9%
Charles Schwab 5.7%
Teleflex 5.4%

Top 10 Holdings1

Brookfield 8.1%
AerCap 6.6%
Fidelity National Financial 6.5%
State Street 6.1%
Chubb 6.1%
Becton Dickinson 6.1%
Philip Morris 5.9%
Globe Life 5.9%
Charles Schwab 5.7%
Teleflex 5.4%

Sector Weights1

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

    C&B Concentrated Value
    Russell 3000® Value Index
    4.5%
  • Consumer Discretionary

    C&B Concentrated Value
    11.0%
    Russell 3000® Value Index
    5.5%
  • Consumer Staples

    C&B Concentrated Value
    5.9%
    Russell 3000® Value Index
    7.5%
  • Energy

    C&B Concentrated Value
    5.0%
    Russell 3000® Value Index
    7.8%
  • Financials

    C&B Concentrated Value
    38.5%
    Russell 3000® Value Index
    22.1%
  • Health Care

    C&B Concentrated Value
    20.4%
    Russell 3000® Value Index
    14.3%
  • Industrials

    C&B Concentrated Value
    11.7%
    Russell 3000® Value Index
    13.9%
  • Information Technology

    C&B Concentrated Value
    4.5%
    Russell 3000® Value Index
    9.3%
  • Materials

    C&B Concentrated Value
    Russell 3000® Value Index
    4.9%
  • Real Estate

    C&B Concentrated Value
    Russell 3000® Value Index
    5.4%
  • Utilities

    C&B Concentrated Value
    Russell 3000® Value Index
    4.8%
  • Cash

    C&B Concentrated Value
    3.0%
    Russell 3000® 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 Concentrated Value Strategy generated strong absolute and relative results in the final quarter of the year, returning 14.84% gross of fees (14.63% net of fees) against a 9.83% return for the Russell 3000® Value Index.

Additional Cooke & Bieler Concentrated Value Disclosures