Cambiar Small Cap Fund Investor Cl · NASDAQ:CAMSX
Cambiar Small Cap Fund Investor Cl — Cambiar Investors — Investor Presentation (March 2023)
39 slides from Cambiar Small Cap Fund Investor Cl's investor presentation, Mar 31, 2023
Slide 1: Cambiar Investors
CAMBIAR INVESTORS 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 INDEPENDENT Mutually aligned interests Entrepreneurial culture drives our
Slide 3: Investment Strategies
INVESTMENT STRATEGIES NNN Domestic Large Cap Value SMID Value Small Cap Value International International Equity International Small Cap Europe Select Global Global Equity Aggressive Value *(MF) Mutual Fund, (CIT) Collective Investment Trust, (SMA) Separately Managed Account, (LP) Limited Partnershi
Slide 4: Investment Team - Domestic
INVESTMENT TEAM - DOMESTIC BRIAN M. BARISH CFA ANDREW P. BAUMBUSCH President, CIO Investment Principal Experience: 34 Years Experience: 25 Years Coverage: Industrials, Communication Services JOSEPH S. CHIN, CFA ADAM BALLANTYNE Investment Principal Senior Analyst Experience: 24 Years Experience: 13 Y
Slide 5: Investment Philosophy
INVESTMENT PHILOSOPHY CAMBIAR INVESTORS
Slide 6: Value Evolution
VALUE EVOLUTION Traditional valuation analysis remains relevant in a wide range of industries. Yet, we believe in an increasingly |P-centric economy, additional value drivers must be considered. CORPORATE PROFIT DRIVERS Value creation has evolved toward capital investment more often accumulating as
Slide 7: 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 8: Equity Style Scale
EQUITY STYLE SCALE Deep Value Relative Value GARP Aggressive Growth ve fy fy fy, O tf», ia fy o SY dd A 4 SY dd Traditional Value Core Growth CAMBIAR * Cambiar’s QPD approach typically results in aggregate portfolio attributes that are best categorized as relative value + We believe this increased o
Slide 9: Investment Process
INVESTMENT PROCESS CAMBIAR INVESTORS
Slide 10: Investment Process Overview
INVESTMENT PROCESS OVERVIEW ESTABLISHING THE LIBRARY Cambiar’s QPD approach creates a fundamental-based framework for analysts to leverage in building their respective ‘library’ of high-quality investment candidates. INVESTMENT SELECTION The analyst builds an investment case for securities identifie
Slide 11: Establishing the Library
ESTABLISHING THE LIBRARY Owned companies should demonstrate above average internal financial/operating performance reflective of a structural product and/or advantaged market position over multi-year periods. ANALYST RESEARCH UNIVERSE Initial universe comprised of all names within analysts' area of
Slide 12: Investment Selection
INVESTMENT SELECTION Analysts undertake a thorough underwriting process in pursuit of the companies that meet Cambiar’s quality, value creation, and return criteria. Seek strong company internals: Adhere to guiding price principles: + Durable franchise position + Price-sensitivity at entry is critic
Slide 13: Portfolio Construction
PORTFOLIO CONSTRUCTION Portfolio Managers and analysts collaborate to continuously test their conviction level for existing holdings and evaluate new opportunities in building a balanced portfolio. CONSISTENCY + Aggregate characteristics are BALANCE + Maintain diverse sources of combined return and
Slide 14: Sell Discipline
SELL DISCIPLINE Active re-allocation of capital as stocks reach price targets, while “being good at being wrong” for positions that do not work out. UPSIDE CONSIDERATIONS DOWNSIDE CONSIDERATIONS Thesis realized, stock reaches price target + Deteriorating or negative change in fundamentals relative t
Slide 15: Risk Management
15 RISK MANAGEMENT Objective is to effectively balance portfolio risk and reward, with a particular emphasis on minimizing permanent loss of capital. SECURITY LEVEL + Analyst specialization + Valuation support + Strict adherence to quality + Liquidity analysis MACRO + Monetary / Fiscal / Political A
Slide 16: Key Cambiar Attributes
KEY CAMBIAR ATTRIBUTES INDEPENDENT ACTIVE Employee owned - Client first Benchmark agnostic / high active share TENURED CLEAR IDENTITY Extensive and diverse bottom-up Single relative value philosophy: research experience Quality, Price, Discipline 16 For Investment Professional/Institutional Use Only
Slide 17: Large Cap Value
LARGE CAP VALUE PORTFOLIO MANAGER Brian M. Barish, CFA CAMBIAR INVESTORS
Slide 18: Large Cap Value: Profile
18 LARGE CAP VALUE: PROFILE KEY FACTS + Portfolio inception: 1973 + 35-45 holdings + Typical weights - Initial: 2-3% | Max: 5% + Market cap range: Primarily >$10 billion TOP 10 HOLDINGS Name Airbus Alphabet JPMorgan Chase Mastercard United Parcel Service Colgate-Palmolive Medtronic L3Harris Intercon
Slide 19: Large Cap Value: Characteristics
LARGE CAP VALUE: CHARACTERISTICS As of 3-31-2023 OPERATING EFFICIENCY ROA (Weighted Avg) 6.3% 6.3% ROA (Median) 4.1% 3% ROE 5-Yr (Weighted Avg) 22.9% 17.3% ROE 5-Yr (Median) 15.3% 13.4% ROIC (Weighted Avg) 11.1% 10.3% ROIC (Median) 7.9% 7A% LEVERAGE Net Debt to FRITDA 1.6 1.9 Vv QUALITY Target Stron
Slide 20: Large Cap Value: Performance
LARGE CAP VALUE: PERFORMANCE 25% 20% 15% 10% - i i o. . Ll -10% 1023 1 Year 3 Year 5 Year 10 year 1Q23 1 Year 3 Year 5 Year 10 year Cambiar LCV (g) 2.1% -5.5% 20.1% 10.5% 10.9% Cambiar LCV (n) 1.9% -6.0% 19.4% 9.9% 10.3% Russell 1000 Value 1.0% -5.9% 17.9% 7.5% 9.1% See Disclosure — Performance and
Slide 21: Large Cap Value: Risk/Return Profile
LARGE CAP VALUE: RISK/RETURN PROFILE Asof 831-2023 RISK REWARD (TRAILING FIVE YEAR) 12.0 11.0 10.0 9.0 8.0 Annualized Return (%) - Net 7.0 6.0 17.5 18.0 18.5 19.0 19.5 20.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) Cambiar LCV (n) 2.47 0.95 95.14 052 0.58 100.68 90.90 Russell 1000 Value
Slide 22: SMID Value
SMID VALUE PORTFOLIO MANAGERS Andrew P. Baumbusch Colin M. Dunn, CFA CAMBIAR INVESTORS
Slide 23: SMID Value: Profile
SMID VALUE: PROFILE KEY FACTS + Portfolio inception: July 31, 2010 + 35-45 holdings — generally equal weighted (at initiation) + Typical weights - Initial: 2.5% | Max: 4% + Market cap range: Primarily $2 - $12 billion TOP 10 HOLDINGS SECTOR WEIGHTS Comm. Services Consumer Discretionary Consumer Stap
Slide 24: SMID Value: Characteristics
SMID VALUE: CHARACTERISTICS As of 3-31-2023 OPERATING EFFICIENCY ROA (Weighted Avg) 71% 3.5% ROA (Median) 5.3% 1.3% ROE 5-Yr (Weighted Avg) 20.4% 12.5% ROE 5-Yr (Median) 16.6% 8.0% ROIC (Weighted Avg) 11.3% 6.2% ROIC (Median) 8.6% 3.9% LEVERAGE Net Debt to EBITDA 17 2.5 Vv QUALITY Target Strong Oper
Slide 25: SMID Value: Performance
SMID VALUE: PERFORMANCE As of 3-31-2023 For Investment Professional/Institutional Use Only; Not For Use With The Public. 30% 25% 20% 15% 10% 5% oy Me = Cambiar SMID Value (g) -5% 0 Cambiar SMID Value (n) = Russell 2500 Value “10% “15% 1023 1 Year 3 Year 5 Year 10 Year Since Inception 731.2010 Cambia
Slide 26: SMID Value: Risk/Return Profile
SMID VALUE: RISK/RETURN PROFILE Asof 831-2023 RISK REWARD (TRAILING FIVE YEAR) 14.0 12.0 10.0 Annualized Return (%) - Net 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation Cambiar SMID Value (n) 5.52 0.85 93.62 0.54 0.87 97.28 79.47 Russell 2500 Value - 1.00 100.00 0.29 - 100.00 100.00 26 Source
Slide 27: Small Cap Value
SMALL CAP VALUE PORTFOLIO MANAGERS Andrew P. Baumbusch Colin M. Dunn, CFA CAMBIAR INVESTORS
Slide 28: Small Cap Value: Profile
SMALL CAP VALUE: PROFILE Asof 831-2023 KEY FACTS SECTOR WEIGHTS + Portfolio inception: November 30, 2004 + 45-55 holdings — generally equal weighted (at initiation) Comm. Services + Typical weights - Initial: 2% | Max: 3.25% = + Market cap range: Primarily $500 million - $5 billion Consumer Discreti
Slide 29: Small Cap Value: Characteristics
SMALL CAP VALUE: CHARACTERISTICS As of 3-31-2023 OPERATING EFFICIENCY ROA (Weighted Avg) 5.1% 0.5% ROA (Median) 3.4% 1.0% ROE 5-Yr (Weighted Avg) 11.0% 6.6% ROE 5-Yr (Median) 9.5% 6.0% ROIC (Weighted Avg) 8.0% 3.0% ROIC (Median) 74% 2.6% LEVERAGE Net Debt to EBITDA 1.2 3.3 Vv QUALITY Target Strong O
Slide 30: Small Cap Value: Performance
SMALL CAP VALUE: PERFORMANCE As of 3-31-2023 30% m Cambiar SCV (g) 25% caCambiar SCV (n) m= Russell 2000 Value 20% 15% 10% “i .neies 0% -5% -10% -15% 1023 1 Year 3 Year © Year 10 Year Since Inception 11.30.2004 Cambiar SCV (g) 73% -2.0% 23.5% 8.4% 7.9% 9.6% Cambiar SCV (n) 7.0% -2,8% 22.5% 7.5% 7.0%
Slide 31: Small Cap Value: Risk/Return Profile
SMALL CAP VALUE: RISK/RETURN PROFILE Asof 831-2023 RISK REWARD (TRAILING FIVE YEAR) 9.0 Annualized Return (%) - Net B29 2D Nw ° ° ° ° ° 2 ° '» ° 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation Cambiar SCV (n) 3.04 0.85 92.03 037 0.41 90.07 80.53 Russell 2000 Value - 1.06 100.00 024 - 100.00 10
Slide 32: Biographies - Investment Team
BIOGRAPHIES - INVESTMENT TEAM BRIAN M. BARISH, CFA President, ClO* Brian Barish is the President and CIO at Cambiar Investors and is responsible for the oversight of all investment functions at the firm. Mr. Barish has over 34 years of investment experience. Prior to joining Cambiar in 1997, Mr. Bar
Slide 33: Biographies - Sales & Client Servicing
BIOGRAPHIES - SALES & CLIENT SERVICING KEVIN FITZPATRICK, CFA Director - Institutional Sales* Kevin Fitzpatrick is a Director of Institutional Sales and Client Services at Cambiar Investors and has over 27 years of industry experience. Mr. Fitzpatrick is responsible for new business development and
Slide 34: Disclosure
DISCLOSURE Portfolio: The listed characteristics, sectors and securities are presented for a representative Cambiar account. Portfolio and index characteristics are calculated by FactSet and are based on FactSet’s methodology. Portfolio holdings, characteristics, country breakdown, and sector weight
Slide 35: 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 36: Definitions
DEFINITIONS Risk/Return Metrics: Alpha — A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. A positive Alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, ‘a negat
Slide 37: 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 (%) 22.3 18.7 32.3 -12.1 15.4 14.3 2.3 9.9 32.6 10.0 22.3 24.3 14.3 12.5 13.8 Cambiar Net Return (%) 21.6 18.0 31.6 -12.6 14.7 13.8 1.9 9.4 32.1 9.5 21.6
Slide 38: 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
Slide 39: 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 (%) 18.5 10.8 30.3 -11.3 5.0 18.5 -8.2 0.8 38.4 14.5 18.5 19.6 9.8 8.2 10.7 Cambiar Net Return (%) 17.6 9.9 29.1 -12.1 4.1 17.5 -9.1 -0.1 37.2 13.4 17.6
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