companies in our fully invested, concentrated portfolio
billion minimum market capitalization at initial purchase**
year track record
million All Cap Value assets under management as of 6/30/2024
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
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Performance
- Consistent pattern of results
- Objective: Outperform the benchmark over the longer term
All Cap Value
Quarter 2 2024
Equity Composite Performance
- Cooke & Bieler - Gross of Fees
- Cooke & Bieler - Net of Fees
- Russell 3000® Value Index
Quality Characteristics1
- C&B All Cap 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.) |
|---|---|---|---|---|
| 9.7% | 6.1x | 3.0x | 13.6x | 12.6x |
| 7.2% | 5.0x | 3.0x | 16.9x | - |
| ROC 5 Year Avg | 9.7% | 7.2% |
|---|---|---|
| Cash Interest Coverage | 6.1x | 5.0x |
| Debt/EBITDA | 3.0x | 3.0x |
| Forecasted P/E (Wtd. Harm. Avg.) | 13.6x | 16.9x |
| P/Normalized Earnings (Wtd. Harm. Avg.) | 12.6x | - |
Portfolio Attributes1
- C&B All Cap Value
- Russell 3000® Value Index
| # Holdings | Market Cap ($B) Range | Market Cap ($B) (Wtd. Avg.) | Annual Turnover |
|---|---|---|---|
| 48 | 1.2 - 877.0 | 91.2 | 27% |
| 2,248 | 0.0 - 877.0 | 149.6 | - |
| # Holdings | 48 | 2,248 |
|---|---|---|
| Market Cap ($B) Range | 1.2 - 877.0 | 0.0 - 877.0 |
| Market Cap ($B) (Wtd. Avg.) | 91.2 | 149.6 |
| Annual Turnover | 27% | - |
Top 10 Holdings1
| Brookfield | 3.2% |
| Gildan Activewear | 3.0% |
| AerCap | 2.9% |
| Open Text | 2.6% |
| Becton Dickinson | 2.6% |
| London Stock Exchange | 2.6% |
| TE Connectivity | 2.5% |
| State Street | 2.5% |
| Omnicom | 2.5% |
| Crown Castle | 2.5% |
Top 10 Holdings1
| Brookfield | 3.2% |
| Gildan Activewear | 3.0% |
| AerCap | 2.9% |
| Open Text | 2.6% |
| Becton Dickinson | 2.6% |
| London Stock Exchange | 2.6% |
| TE Connectivity | 2.5% |
| State Street | 2.5% |
| Omnicom | 2.5% |
| Crown Castle | 2.5% |
Sector Weights1
- C&B All Cap Value
- Russell 3000® Value Index
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Communication Services
C&B All Cap Value 4.4% Russell 3000® Value Index 4.4% -
Consumer Discretionary
C&B All Cap Value 9.8% Russell 3000® Value Index 5.1% -
Consumer Staples
C&B All Cap Value 6.6% Russell 3000® Value Index 7.6% -
Energy
C&B All Cap Value 4.6% Russell 3000® Value Index 8.1% -
Financials
C&B All Cap Value 24.2% Russell 3000® Value Index 23.1% -
Health Care
C&B All Cap Value 15.6% Russell 3000® Value Index 13.6% -
Industrials
C&B All Cap Value 16.6% Russell 3000® Value Index 14.3% -
Information Technology
C&B All Cap Value 7.4% Russell 3000® Value Index 9.4% -
Materials
C&B All Cap Value — Russell 3000® Value Index 4.7% -
Real Estate
C&B All Cap Value 4.6% Russell 3000® Value Index 4.9% -
Utilities
C&B All Cap Value 2.1% Russell 3000® Value Index 4.9% -
Cash
C&B All Cap Value 4.1% Russell 3000® Value Index —
Additional Cooke & Bieler All Cap Value Disclosures
All Cap Value Equity Composite
| Year | Total Return Gross of Fees (%) | Total Return Net of Fees (%) | Russell 3000® Value Index (%) | Russell 3000® Value Index 3-Yr Std Dev (%) | Composite 3-Yr Std Dev (%) | Composite Dispersion (%) | Market Value ($Millions) | Total Firm Assets ($Millions) | # of Portfolios |
|---|---|---|---|---|---|---|---|---|---|
| 2014 | 9.12 | 8.32 | 12.70 | 9.36 | 9.65 | 0.48 | 245.2 | 4,921.9 | 31 |
| 2015 | -1.44 | -2.18 | -4.13 | 10.74 | 10.69 | 0.32 | 227.4 | 4,804.9 | 32 |
| 2016 | 20.84 | 19.98 | 18.40 | 10.97 | 11.34 | 0.44 | 281.5 | 5,303.4 | 37 |
| 2017 | 18.43 | 17.58 | 13.19 | 10.33 | 10.56 | 0.32 | 324.8 | 5,912.3 | 39 |
| 2018 | -11.31 | -11.99 | -8.58 | 11.05 | 12.71 | 0.71 | 255.4 | 5,084.6 | 37 |
| 2019 | 40.62 | 39.66 | 26.26 | 12.01 | 14.79 | 0.87 | 352.8 | 9,757.1 | 37 |
| 2020 | 5.37 | 4.56 | 2.87 | 19.95 | 24.73 | 1.25 | 370.5 | 9,540.8 | 35 |
| 2021 | 21.05 | 20.19 | 25.37 | 19.34 | 23.88 | 0.31 | 416.9 | 11,942.6 | 36 |
| 2022 | -11.09 | -11.78 | -7.98 | 21.53 | 24.59 | 0.31 | 347.5 | 10,678.1 | 35 |
| 2023 | 21.48 | 20.61 | 11.66 | 16.69 | 18.05 | 0.43 | 406.4 | 11,834.8 | 39 |
The All Cap Value Equity Composite has been examined for the periods from May 1, 2001 through December 31, 2022. The examination reports are available upon request.
The Cooke & Bieler All Cap Value Equity Composite (Composite) has an inception date of May 1, 2001 and currently includes all fully discretionary, fee paying and non-fee paying all cap value equity portfolios managed for more than one month. The Composite was created in May 2001. For investment purposes, we generally define all cap equity securities as those of companies whose market capitalization is within the range of the Russell 3000® Index at initial time of purchase. All Cap portfolio holdings are chosen from securities held in the firm’s large, mid and small cap portfolios. The investment team regularly reviews these portfolios to determine which securities are to be held in the All Cap portfolio. Typically, those stocks that have higher portfolio weights in the large, mid and small cap portfolios represent a substantial portion of the All Cap portfolio. As part of the inclusion process, the investment team also considers the impact a security has on the portfolio’s sector and market cap diversification profile. Portfolios are concentrated, typically holding approximately 40-50 securities.
The standard fee agreement currently in effect is 0.75 of 1% per annum on the first $20 million, 0.65 of 1% per annum on the next $20 million, 0.60 of 1% per annum on the next $20 million, and 0.55 of 1% per annum on the remaining balance, however fees are negotiable. Net of fee returns are calculated quarterly by deducting one quarter of the annual model fee rate for the respective period from the gross of fee Composite return.
For comparison purposes, the Composite is measured against the Russell 3000® Value Index. The Russell 3000® Value Index returns are provided to represent the investment environment existing during the time periods shown and are not covered by the report of independent verifiers. FTSE Russell is a subsidiary of London Stock Exchange Group (LSEG) and is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of FTSE Russell Indexes.
Cooke & Bieler Additional Disclosures
Notes:
- Cooke & Bieler, L.P. claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Cooke & Bieler has been independently verified for the periods January 1, 1993 through December 31, 2022. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite maintenance as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm‐wide basis. Verification does not provide assurance on the accuracy of any specific performance report.
- The Firm is defined as Cooke & Bieler, L.P., an independent investment management firm and is registered as an investment adviser under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training.
- Rates of return are calculated in U.S. dollars. Portfolios are valued monthly on a trade date basis. Portfolio returns reflect the reinvestment of dividend and interest income.
- Returns are presented both gross and net of fees. Gross of fee returns do not reflect the deduction of investment advisory fees. Client returns will be reduced by investment advisory fees and other expenses they may incur in the management of their investment advisory accounts. Investment advisory fees are described in Part 2A of Form ADV. The actual fee charged is subject to negotiation and may depend on the asset size, client location, and type of portfolio.
- Dispersion is measured using an asset weighted standard deviation of portfolio gross returns represented within the Composite for the full year.
- A list of composite descriptions is available upon request. Policies for valuing investments, calculating performance, and preparing GIPS Reports are also available upon request.
- For comparison purposes, each index is fully invested and includes the reinvestment of income. The returns for each index do not include any transaction costs, management fees or other costs.
- The three-year annualized ex-post standard deviation measures the variability of the composite (using gross returns) and the benchmark for the preceding 36-month period.
- GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
- Past performance is not indicative of future results. All investing involves risk, including loss of principal.
Strategy Commentary
Download Commentary
As inflation showed itself to be stubbornly persistent and interest rates appeared to weigh more heavily on the economy, investors became less optimistic in the second quarter that the Federal Reserve would be able to engineer a soft landing. Expectations for rate cuts were pushed further out and 10-year interest rates fell slightly, deepening the yield curve inversion that has held for most of the last 12 months.
Cooke & Bieler’s All Cap Value Strategy underperformed the Russell 3000® Value Index during the quarter, posting a -6.70% return gross of fees (-6.89% net of fees) against a -2.25% return for the benchmark.