Cambiar Small Cap Fund Investor Cl · NASDAQ:CAMSX
Cambiar Small Cap Fund Investor Cl — Cambiar Investors — Investor Presentation (May 2022)
15 slides from Cambiar Small Cap Fund Investor Cl's investor presentation, May 2022
Slide 1: Importance of Quality in Small & Mid Cap Equities
CAMBIAR INVESTORS IMPORTANCE OF QUALITY IN SMALL & MID CAP EQUITIES Andrew P. Baumbusch Co-Portfolio Manager, SMID & Small Cap Value Colin M. Dunn, CFA Co-Portfolio Manager, SMID & Small Cap Value FOR MORE INFO CAMBIAR INVESTORS
Slide 2: Why Cambiar
WHY CAMBIAR A stable, client-first organization anchored by a tenured team whose sole objective is to deliver superior risk-adjusted returns over a full market cycle. YEAR FOUNDED ASSETS UNDER SUPERVISION* EMPLOYEE-OWNED 1973 $7.0B 100% INDEPENDENT UNWAVERING ACTIVE INTELLECTUALLY MANAGER CURIOUS Mu
Slide 3: Portfolio Managers
PORTFOLIO MANAGERS CAMBIAR SMID & SMALL CAP VALUE ANDY BAUMBUSCH Andy Baumbusch is an Investment Principal at Cambiar Investors and has over 24 years of investment experience. In addition to his research responsibilities within Industrials and Communication Services, Mr. Baumbusch also serves as a P
Slide 4: Quality, Price, Discipline (QPD)
QUALITY, PRICE, DISCIPLINE (QPD) Be price sensitive buyers of high-quality assets. QUALITY PRICE Company-specific attributes such as high relative Price sensitivity at attachment is the most critical profitability, durable free cash flow generation, a determinant of both forward return potential and
Slide 5: Russell 3000 Index - Price/Sales
RUSSELL 3000 INDEX - PRICE/SALES As of 231-2022 RUSSELL 3000: PERCENT OF INDEX WITH PRICE/SALES RATIOS > 10X A5x 20.1% 19.6% 20.0% 40x x = i759 A 17.8% 3.5x 2 é Pa 15.0% 3.0x g 8 = 3B a g 8 = 12.5% 2.5% S g 3 = 2 £ 10.0% = 5 10.0% 20 oe 3 Ss 2 3 a g s = 8 7.5% 1.5x. 3 8 8 ow 5.0% 1.0x. sS RS 2.5% 0.
Slide 6: Non-Earning Companies Within the Small-Mid Cap Index
NON-EARNING COMPANIES WITHIN THE SMALL-MID CAP INDEX sof 8-31-2022 % OF RUSSELL 2500 CONSTITUENTS WITH NEGATIVE DILUTED EPS 30.0% 25.0% 20.0% | I | 15.0% & & o & es e Ss & oY S Se e. oy Na og Na oy Na oe Roe & ra s as s ca s s *s ys ys ys s s Ps Ss Ps s ee s 50.0% 45.0% 40.0% 35.0% CAMBIAR PERSPECTI
Slide 7: Small-Mid Cap Intra-Year Performance
SMALL-MID CAP INTRA-YEAR PERFORMANCE As of 3-31-2022 Russell 2500 (Calendar Year Returns and Intra-Year Declines) 60% 43% 40% % 32% 35% 23% 22% 29% 20% 17% 15% 16% I I 7% : a | | | o% | 0% - a _ = 1% 0% o e e 4% 9% e @e.n.te -19% ve a Pee “ -13% -13% -13% -13% -13% 12% 12% 20% e 19% © o8% -15% -15%
Slide 8: The Importance of Quality
THE IMPORTANCE OF QUALITY FACTOR PERFORMANCE 10 WORST MSCI USA QUARTERS PROFITABILITY FACTOR QTR RETURNS 5.0 g - -3.0 Barra Profitability factor generated positive returns cover 9 of the 10 largest quarterly market declines. 5.0 7.0 408 1020 3002 3001 2002 3011 4018 1001 2010 1009 me Profitability P
Slide 9: SMID Value: Characteristics
SMID VALUE: CHARACTERISTICS As of 3-31-2022 OPERATING EFFICIENCY ROA (Weighted Avg) ROA (Median) ROE (Weighted Avg) ROE (Median) ROIC (Weighted Avg) ROIC (Median) LEVERAGE L? Debt to Capital Net Debt to EBITDA Vv QUALITY 7.0% 6.1% 20.9% 16.5% 11.5% 10.0% 36.4 13 Strong operating performance - Above
Slide 10: SMID Value: Quality Profile (Trailing Years)
SMID VALUE: QUALITY PROFILE ctrailing 5 Years) As of 3-31-2022 25.0 ROE 14.0 ROIC 12.0 20.0 10.0 _ 150 _ 80 g g 10.0 60 40 5.0 2.0 0.0 0.0 REAR BB BEAADRACS OSHS HEY RSE RBBB eengaeseseunneeR PPT PPT preeg rt eta s asa gaggg PPP PPP RTP ster ey aggagg PERSE EASES SRPTERPIIRWW: 22 ze 2 29 9 2 SSF R33
Slide 11: SMID Value: Risk/Return Profile
SMID VALUE: RISK/RETURN PROFILE sof 331-2022 RISK REWARD (TRAILING FIVE YEAR) 16.0 15.0 14.0 13.0 12.0 11.0 10.0 Annualized Return (%) - Gross ~~ @ oo oO toad ° 18.0 18.5 19.0 19.5 20.0 20.5 21.0 21.5 22.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) Cambiar SMID Value (g) 4.73 0.87 93.48 0
Slide 12: SMID Value: Performance
SMID VALUE: PERFORMANCE As of 3-31-2022 20% Cambiar SMID Value (g) caCambiar SMID Value (n) 15% , "Russell 2500 Value thn zi” 5% 1922 1 Year 3 Year 5 Year 10 Year Since Inception 731.2010 Cambiar SMID Value (g) 3.4% 3.5% 15.1% 13.5% 13.4% 14.8% Cambiar SMID Value (n) -3.6% 28% 14.4% 12.8% 12.6% 14.1
Slide 13: Cambiar SMID Value: Excess Return
CAMBIAR SMID VALUE: EXCESS RETURN As of 3-31-2022 The Cambiar SMID Value strategy has an extensive track record of outperforming the Russell 2500 Value Index over rolling three, five, and ten year periods. ROLLING 3 YEAR PERFORMANCE ROLLING 5 YEAR PERFORMANCE ROLLING 10 YEAR PERFORMANCE 1% Le 0% ‘Ca
Slide 14: Disclosure
DISCLOSURE Performance: The performance information represents the respective Cambiar strategy composite and may be preliminary. Returns are presented gross (g) and net (n) of actual management fees and include the reinvestment of all income. Net returns have been reduced by transaction expenses and
Slide 15: Performance
Annualized (as of December 31, 2021) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 1 YR 3 YR 5 YR 7 YR 10 YR Performance Cambiar Gross Return 1 (%) 24.3 11.9 31.8 -1.9 12.9 18.4 -6.0 7.1 48.4 13.4 24.3 22.4 15.2 12.4 15.1 Cambiar Net Return (%) 23.5 11.2 31.0 -2.5 12.2 17.5 -6.7 6.5 47.4 12.5 23