Poplar Forest Partners Fund Class A · NASDAQ:PFPFX
Poplar Forest Partners Fund Class A — Poplar Forest Capital — Q3 2023 Earnings Presentation
14 slides from Poplar Forest Partners Fund Class A's earnings presentation, October 2023
Slide 1: 3Q 2023 Quarterly Call
ex POPLAR FOREST [ a [J a | CAPITAL 3Q 2023 Quarterly Call
Slide 2: Elevated P/E Ratio Signals Investor Optimism
Elevated P/E Ratio Signals Investor Optimism Source: Intrinsic 2
Slide 3: Optimism is Understandable Given Still High, but Moderating Inflation and GDP Growth
Optimism is Understandable Given Still High, but Moderating Inflation and GDP Growth Source: Intrinsic 3
Slide 4: Consumer Spending is Resilient Because Jobs Are Plentiful
Consumer Spending is Resilient Because Jobs Are Plentiful Source: Intrinsic 4
Slide 5: Tight Labor Markets Starting to Bite: Workdays Lost to Strikes at 20 Year High
Tight Labor Markets Starting to Bite: Workdays Lost to Strikes at 20 Year High Note: Calculated by multiplying the number of workdays lost each month in a stoppage by the estimated number of works involved. Stoppages include strikes and lockouts. Data for 2023 are preliminary. Source: Labor Departme
Slide 6: Most Aggressive Tightening in Decades
Most Aggressive Tightening in Decades The Fed is moving faster to tame inflation than they have in 40 years Changes in FF target rate in past tightening cycle (cum pct pts) 6.000 5.000 4.000 3.000 2.000 1.000 - 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Slide 7: Mortgage Affordability in US at All-Time Low
Mortgage Affordability in US at All-Time Low House Affordability Index Source: National Association of Realtors Note: A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. A 120 value means that family has a 120% of the
Slide 8: Leading Economic Indicators Continue to Signal Trouble
Leading Economic Indicators Continue to Signal Trouble 8
Slide 9: We Believe Poplar Forest Offers Compelling Upside Potential, Even in a Recession
We Believe Poplar Forest Offers Compelling Upside Potential, Even in a Recession Estimated Consensus Estimated Implied 2024 Fair Value 2024 Recession Recession P/E P/E Impact P/E Poplar Forest Partners 15.0x 10.6x -20% 12.5x S&P 500 17.0x 18.4x -15% 21.0x Source: CapitalIQ, Poplar Forest estimates 9
Slide 10: The Biggest Companies Continue to Drive Performance
The Biggest Companies Continue to Drive Performance Historical Dividend Median Market YTD through Earn. Growth Yield Cap ($mm) 9/30/2023 Mega Cap Growth ETF (MGK) 14.1% 0.5% 610,750 +32.4% Russell 1000 Growth ETF (IWF) 15.7% 0.7% 397,454 +24.9% S&P 500 Index 15.0% 1.5% 228,167 +13.0% Russell 1000 Va
Slide 11: Historically, Biggest are Worst; Midcaps are Best
Historically, Biggest are Worst; Midcaps are Best Annualized Total Value of $10,000 Excess Return Return invested on 6/30/96 Relative to 6/30/96-9/30/23 (1) Top 200 Russell Top 200 Value Index 7.85% $78,406 Russell Midcap Value Index 9.73% 125,564 +60% Russell 1000 Value Index 8.38% 89,612 +14% Russ
Slide 12: Poplar Forest Has Above-Average Exposure to Midcaps – Historically, the Market's Sweet Spot
Poplar Forest Has Above-Average Exposure to Midcaps – Historically, the Market’s Sweet Spot % of Fund Assets by Market Capitalization Company size Poplar Forest Morningstar Large Large Value Fund Partners Fund Value Index Average Giant 8.1% 30.8% 40.4% Large 33.4% 45.8% 24.5% Mid 41.1% 22.9% 28.2% S
Slide 13: PFC Improved Risk Management – Last 3 Years
PFC Improved Risk Management – Last 3 Years Source: Morningstar; data as of 8/31/23 Greater upside capture Lower downside capture vs. Category 13
Slide 14: Questions?
Questions? PPR Porta Forest TT] [eresnves 14
Poplar Forest Capital — Q3 2023 Earnings Presentation on 6ix