Small Cap Value Q2 2024


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40 to 60

companies in our fully invested, concentrated portfolio

$0.45 to $7.1

billion market capitalization range at initial purchase**

15

year track record

$1.8

billion Small Cap Value assets under management as of 6/30/2024

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 2 2024

Equity Composite Performance

  • Cooke & Bieler - Gross of Fees
  • Cooke & Bieler - Net of Fees
  • Russell 2000® Value Index
Returns as of 6.30.2024. 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 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.)
10.6% 6.0x 2.3 13.1x 10.2x
5.6% 4.0x 3.3x 20.6x -
ROC 5 Year Avg 10.6% 5.6%
Cash Interest Coverage 6.0x 4.0x
Debt/EBITDA 2.3 3.3x
Forecasted P/E (Wtd. Harm. Avg.) 13.1x 20.6x
P/Normalized Earnings (Wtd. Harm. Avg.) 10.2x -
Period Ending: 6.30.2024 * 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
44 0.3 - 11.8 4.4 31%
1,402 0.0 - 15.0 2.9 -
# Holdings 44 1,402
Market Cap ($B) Range 0.3 - 11.8 0.0 - 15.0
Market Cap ($B) (Wtd. Avg.) 4.4 2.9
Annual Turnover 31% -
Source: FactSet and Russell®

Top 10 Holdings1

Gildan Activewear 4.0%
Woodward 3.5%
Air Lease 3.4%
Glacier Bancorp 3.4%
Winnebago 3.1%
Essent 2.9%
American Woodmark 2.8%
Commerce Bancshares 2.8%
Helen of Troy 2.6%
RenaissanceRe 2.5%

Top 10 Holdings1

Gildan Activewear 4.0%
Woodward 3.5%
Air Lease 3.4%
Glacier Bancorp 3.4%
Winnebago 3.1%
Essent 2.9%
American Woodmark 2.8%
Commerce Bancshares 2.8%
Helen of Troy 2.6%
RenaissanceRe 2.5%

Sector Weights1

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

    C&B Small Cap Value
    Russell 2000® Value Index
    2.4%
  • Consumer Discretionary

    C&B Small Cap Value
    22.1%
    Russell 2000® Value Index
    10.5%
  • Consumer Staples

    C&B Small Cap Value
    4.0%
    Russell 2000® Value Index
    2.2%
  • Energy

    C&B Small Cap Value
    2.8%
    Russell 2000® Value Index
    10.4%
  • Financials

    C&B Small Cap Value
    17.7%
    Russell 2000® Value Index
    26.2%
  • Health Care

    C&B Small Cap Value
    12.5%
    Russell 2000® Value Index
    8.7%
  • Industrials

    C&B Small Cap Value
    32.1%
    Russell 2000® Value Index
    14.4%
  • Information Technology

    C&B Small Cap Value
    3.3%
    Russell 2000® Value Index
    6.4%
  • Materials

    C&B Small Cap Value
    Russell 2000® Value Index
    5.0%
  • Real Estate

    C&B Small Cap Value
    Russell 2000® Value Index
    9.9%
  • Utilities

    C&B Small Cap Value
    Russell 2000® Value Index
    3.9%
  • Cash

    C&B Small Cap Value
    5.4%
    Russell 2000® Value Index
Source: FactSet and Russell®

Strategy Commentary

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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 Small Cap Value Strategy underperformed the Russell 2000® Value Index during the quarter, posting a -9.28% return gross of fees (-9.51% net of fees) against a -3.64% return for the benchmark. 

Additional Cooke & Bieler Small Cap Value Disclosures