Cambiar Small Cap Fund Investor Cl · NASDAQ:CAMSX
Cambiar Small Cap Fund Investor Cl — Cambiar Investors — Investor Presentation (October 2022)
46 slides from Cambiar Small Cap Fund Investor Cl's investor presentation, October 2022
Slide 1: Cambiar Investors
CAMBIAR INVESTORS James Gibbons Senior Vice President — Sales & Client Service 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 Domestic W Large Cap Value W SMID Value Ww Small Cap Value International W’ international Equity International Small Cap pw Europe Select Global Vv Global Equity v Aggressive Value *(MF) Mutual Fund, (CIT) Collective Investment Trust, (SMA) Separately Managed Account, (LP) Limi
Slide 4: Investment Team - Domestic
INVESTMENT TEAM - DOMESTIC BRIAN M. BARISH CFA President, ClO Experience: 33 Years CHARMAINE CHAN, PhD, CFA Investment Principal Experience: 12 Years Coverage: Healthcare EMPOWERED + Bottom-up, analyst-led idea generation * Proprietary research, earnings, and cash flow models ANDREW P. BAUMBUSCH Inv
Slide 5: 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 Greater sustainability of margins as network effects drive market share consolid
Slide 6: 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 7: 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 8: 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 Hil Initial universe comprised ofall ~~] - - names within analysts'
Slide 9: 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 10: 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 11: 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 (includi
Slide 12: Risk Management
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 + _ESG assessment MACRO + Monetary / Fis
Slide 13: 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 13 OUR MISSION Deliver superior risk adjusted returns
Slide 14: Opportunity Fund
OPPORTUNITY FUND CAMOX — Investor Share | CAMWX — Institutional Share PORTFOLIO MANAGER Brian M. Barish, CFA DISCLOSURE To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and o
Slide 15: Opportunity Fund: Profile
OPPORTUNITY FUND: PROFILE * — Conviction-weighted investment approach that considers company-specific fundamentals and relevant macro trends Domestic large cap fund that is a natural extension of Cambiar’s oldest strategy * — Sector allocations driven by bottom-up fundamentals, and may differ from t
Slide 16: Opportunity Fund: Profile
OPPORTUNITY FUND: PROFILE As of 930-2022 KEY FACTS + 35-45 holdings * Weights - Initial: 2-3% | Max: 5% SECTOR WEIGHTS * Market cap range: Primarily >$10 billion Comm. Services mmm Consumer Discretionary _ia consume sts _—_—_—_—_— rey =i TOP 10 HOLDINGS ST Financials Name Weighting Sector es Health
Slide 17: Opportunity Fund: Characteristics
OPPORTUNITY FUND: CHARACTERISTICS [eambiar Tet000 value) eambiar et00 vate) Cambiar 1000 Val OPERATING EFFICIENCY ROA (Weighted Avg) 5.9% 6.8% ROA (Median) 4.1% 4.8% ROE (Weighted Avg) 20.3% 17.1% ROE (Median) 13./% 13.9% ROIC (Weighted Avg) 11.2% 11.2% ROIC (Median) 8.8% 8.1% LEVERAGE Net Debt to E
Slide 18: Opportunity Fund: Factor Tilts vs. R1000 Value
OPPORTUNITY FUND: FACTOR TILTS vs. R1000 VALUE QUALITY FACTORS 0.19 — || Profitability Leverage Earnings Quality QUALITY Bias towards companies that demonstrate pattern of consistent returns and free cashflow should result in favorable profitability and leverage attributes. ACTIVE FACTOR EXPOSURES V
Slide 19: Opportunity Fund: Performance
OPPORTUNITY FUND: PERFORMANCE As of 930-2022 15% mCAMOX 10% Russell 1000 Value - i U i D 0% 5% _ -10% -15% -20% 3022 YTD 1 Year 3 Year 5 Year 10 year Since Inception 6.30.1998 Since Inception 6.30.1998 CAMOX -4.58% -16.91% 12.24% 8.64% 7.11% 10.01% 8.29% Russell 1000 Value 5.62% -17.75% -11.36% 4.36
Slide 20: Opportunity Fund: Performance
OPPORTUNITY FUND: PERFORMANCE As of 930-2022 15% = CAMWX 10% Russell 1000 Value - i LI i 0% T r 1 5% -10% -15% -20% 3Q22 YTD 1 Year 3 Year 5 Year 10 year Since Inception 6.30.1998 Since Inception 3Q22 YTD 1 Year 3 Year 5 Year 10 year 6.30.1998 CAMWX 4.56% -16.80% -12.07% 8.85% 7.30% 10.24% 8.47% Rus
Slide 21: CAMOX: Risk/Return Profile
CAMOX: RISK/RETURN PROFILE Asof 930-2022 RISK REWARD (TRAILING FIVE YEAR) 10.0 9.0 8.0 7.0 6.0 5.0 Annualized Return (%) 40 3.0 2.0 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMOX 1.87 0.97 94.84 041 0.44 101.01 93.35 Russell 1000 Value - 1.00
Slide 22: CAMWX: Risk/Return Profile
CAMWX: RISK/RETURN PROFILE Asof 930-2022 RISK REWARD (TRAILING FIVE YEAR) 10.0 9.0 8.0 7.0 6.0 5.0 Annualized Return (%) 4.0 3.0 2.0 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMWX 2.04 0.97 94.85 0.41 0.49 101.49 93.13 Russell 1000 Value - 1.
Slide 23: SMID Fund
SMID FUND CAMMX — Investor Share | CAMUX — Institutional Share PORTFOLIO MANAGERS Andrew P. Baumbusch Colin M. Dunn, CFA DISCLOSURE To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing
Slide 24: SMID Fund: Profile
24 SMID FUND: PROFILE * — Invests in small and mid-sized companies with market capitalization range primarily between $2-$12 billion + Overlap with small cap strategy generally limited to no more than 6-8 holdings * — Sector allocations driven by bottom-up fundamentals, and may differ from the index
Slide 25: SMID Fund: Profile
SMID FUND: PROFILE KEY FACTS + 35-45 holdings — equal weighted * Weights - Initial: 2.5% | Max: 4% + Market cap range: Primarily $2 - 12 billion TOP 10 HOLDINGS Name Reinsurance Group Of America Booz Allen Hamilton Amdocs Atmos Energy BOK Financial Arch Capital Group Hubbell Quest Diagnostics East W
Slide 26: SMID Fund: Characteristics
SMID FUND: CHARACTERISTICS As of 9-30-2022 OPERATING EFFICIENCY ROA (Weighted Avg) 8.2% 3.3% ROA (Median) 6.4% 1.4% ROF (Weighted Avg) 214% 12.1% ROE (Median) 16.8% 8.2% ROIC (Weighted Avg) 13.3% AY ROIC (Median) 10.9% AS% LEVERAGE Net Debt to EBITDA 14 3.5 QUALITY Strong operating performance - Abo
Slide 27: SMID Fund: Factor Tilts vs. R2500 Value
SMID FUND: FACTOR TILTS vs. R2500 VALUE ACTIVE FACTOR EXPOSURES As of 9-30-2022 0.39 QUALITY FACTORS VALUE/GROWTH FACTORS VOLATILITY FACTORS 0.32 0.29 [| 0.05 | -0.13 -0.35 -0.35 -0.54 Profitability Leverage Earnings Quality Earnings Yield Value Growth Beta Residual Volatility QUALITY VALUATION VOLA
Slide 28: SMID Fund: Quality Profile
28 Active Exposure SMID FUND: QUALITY PROFILE ctrailing 5 Years) As of 9-30-2022 ROIC eaAaAnneossennnnaan seat eee egg e ee H gg 223 83338 8553 835 F ——Cambiar SMID Fund 9 ——R2500V NET DEBT to EBITDA 25.0 ROE 14.0 12.0 20.0 10.0 15.0 _ 80 g g 10.0 60 4.0 5.0 2.0 0.0 0.0 PARR BE2BAAADRSSSSH Aa HADA A
Slide 29: SMID Fund: Performance
29 SMID FUND: PERFORMANCE Asof 930-2022 15% m= CAMMX 10% = Russell 2600 Value 0% 5% | | -10% -15% -20% -25% 3022 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 5.31.2011 CAMMX 6.34% -18.18% “12.21% 6.06% 7.93% 10.76% 863% Russell 2500 Value -4.50% -20.41% -15.35% 4.52% 3.78% 841% 7.53% Performance
Slide 30: SMID Fund: Performance
SMID FUND: PERFORMANCE Asof 930-2022 15% mCAMUX 10% m Russell 2500 Value 0% 5% 10% 15% -20% 25% 3022 YTD 1 Year 3 Year § Year 10 Year Since Inception §.31.2011 CAMUX 6.29% -18.10% -12.14% 6.15% 7.99% 10.81% 8.67% Russell 2500 Value -4.50% -20.41% -15.35% 4.52% 3.78% 8.41% 7.53% Performance for perio
Slide 31: CAMMX: Risk/Return Profile
CAMMxX: RISK/RETURN PROFILE Asof 930-2022 RISK REWARD (TRAILING FIVE YEAR) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 Annualized Return (%) 2.0 1.0 0.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMMX 4.07 0.86 93.46 0.42 0.69 97.27 82.89 Russall 2500 Value -
Slide 32: CAMUX: Risk/Return Profile
CAMUX: RISK/RETURN PROFILE Asof 930-2022 RISK REWARD (TRAILING FIVE YEAR) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 Annualized Return (%) 3.0 2.0 1.0 0.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMUX 4.13 0.86 93.42 0.42 0.70 97.48 82.92 Russell 2500 Value -
Slide 33: Small Cap Fund
SMALL CAP FUND CAMSX — Investor Share | CAMZX — Institutional Share PORTFOLIO MANAGERS Andrew P. Baumbusch Colin M. Dunn, CFA DISCLOSURE To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges and expenses before inve
Slide 34: Small Cap Fund: Profile
SMALL CAP FUND: PROFILE * Equal-weighted approach - forces discipline in a volatile asset class . Seog han geno with market capitalization range typically between Fund is designed to capitalize on U.S. small-cap investments + — Diversified across multiple sectors/industries Investor Share Institutio
Slide 35: Small Cap Fund: Profile
35 SMALL CAP FUND: PROFILE KEY FACTS * 45-55 holdings — equal weighted * Weights - Initial: 2% | Max: 3.25% + Market cap range: Primarily $500 million - $5 billion TOP 10 HOLDINGS Insperity 2.9% Industrials Healthstream 2.9% Health Care Addus Homecare 2.8% Health Care Texas Capital Bancshares 2.8% F
Slide 36: Small Cap Fund: Characteristics
SMALL CAP FUND: CHARACTERISTICS As of 9-30-2022 OPERATING EFFICIENCY ROA (Weighted Avg) 5.1% 0.2% ROA (Median) 42% 1.1% ROE (Weighted Avg) 10.5% 6.4% ROE (Median) 9.1% 6.6% ROIC (Weighted Avg) 8.3% 3.1% ROIC (Median) 7.8% 3.3% LEVERAGE Net Debt to EBITDA 0.8 44 QUALITY Strong operating performance -
Slide 37: Small Cap Fund: Factor Tilts vs. R2000 Value
SMALL CAP FUND: FACTOR TILTS vs. R2000 VALUE QUALITY FACTORS 0.44 0.48 -0.50 Profitability Leverage Earnings Quality QUALITY Bias towards companies that demonstrate pattern of consistent returns and free cashflow result in favorable profitability and leverage exposures, + These attributes can assist
Slide 38: Small Cap Fund: Quality Profile
38 {%) Active Exposure 2 SMALL CAP FUND: QUALITY PROFILE ctrailing 5 Years) 16.0 ROE 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18, Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Cambiar Small Cap Fund ~——R2000V PROFITABILITY FACTOR
Slide 39: Small Cap Fund: Performance
39 SMALL CAP FUND: PERFORMANCE Asof 930-2022 10% m= CAMSX HE i 0% | ee | 5% 1» -10% -15% -20% 25% 3022 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 8.31.2004 CAMSX -5.54% -17.76% -14.53% 4.10% 4.25% 6.53% 7.95% Russell 2000 Value 461% -21.12% -17.69% 4.72% 2.87% 7.94% 7.00% Performance for perio
Slide 40: Small Cap Fund: Performance
40 SMALL CAP FUND: PERFORMANCE Asof 930-2022 10% mCAMZ2X - — | nH | 0% | “5% a -10% -15% -20% -25% 3022 YTD 1 Year 3 Year 5 Year 10 year Since Inception 8.31.2004 CAMZX -5.AA% -17.63% -14.33% 4.29% 442% 6.75% 8.12% Russell 2000 Value -4.61% -21.12% -17.69% 4.72% 2.87% 7.94% 7.00% Performance for per
Slide 41: CAMSX: Risk/Return Profile
CAMSX: RISK/RETURN PROFILE As of 9-30-2022 RISK REWARD (TRAILING FIVE YEAR) Annualized Return (%) 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMSX 1.40 0.86 92.44 0.25 0.21 90.53 Russell 2000 Value - 1.00 100.00 0.19 further detail regarding specifi
Slide 42: CAMZX: Risk/Return Profile
CAMZX: RISK/RETURN PROFILE As of 9-30-2022 RISK REWARD (TRAILING FIVE YEAR) - o Annualized Return (%) nN w 3 fo) to) S o 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMZX 1.56 0.87 92.50 0.26 0.24 91.01 Russell 2000 Value - 1.00 100.00 0.19 85.59 - 1
Slide 43: Biographies - Investment Team
BIOGRAPHIES - INVESTMENT TEAM BRIAN M. BARISH, CFA President, ClO* Brian Barish is the President and ClO at Cambiar Investors and is responsible for the oversight of all investment functions at the firm. Mr. Barish has over 33 years of investment experience. Prior to joining Cambiar in 1997, Mr. Bar
Slide 44: 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 26 years of industry experience. Mr. Fitzpatrick is responsible for new business development and
Slide 45: Definitions
45 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 neg
Slide 46: Index Definitions
INDEX DEFINITIONS MSCI World Index: The MSCI World Index is a free float-adjusted, market capitalization weighted index that measures large and mid-cap equity performance across countries with developed markets. MSC! World ex. USA Index: The MSCI World ex. USA Index is a free floatadjusted, market c
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