Cambiar Small Cap Fund Investor Cl · NASDAQ:CAMSX
Cambiar Small Cap Fund Investor Cl — Cambiar Investors — Investor Presentation (October 2023)
47 slides from Cambiar Small Cap Fund Investor Cl's investor presentation, October 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 1973 INDEPENDENT Mutually aligned interests Entrepreneurial culture drives our commitment to continuously Improve Except
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 wp Europe Select Global Vv Global Equity ” Aggressive Value INCEPTION 1973 2010 2004 1997 2013 2014 1998 2007 HOLDINGS RANGE 35-45 35-45 45-55 40-50 40-50 35
Slide 4: Investment Team - Domestic
INVESTMENT TEAM - DOMESTIC BRIAN M. BARISH CFA President, ClO Experience: 34 Years JOSEPH S. CHIN, CFA Investment Principal Experience: 24 Years Coverage: Technology, Retail EMPOWERED * Bottom-up, analyst-led idea generation + Proprietary research, earnings, and cash flow models ANDREW P. BAUMBUSCH
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 Value creation has evolved toward capital investment more often accumulating as
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 relative to
Slide 12: Risk Management
12 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
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 KEY FACTS + 35-45 holdings + Weights - Initial: 2-3% | Max: 5% + Market cap range: Primarily >$10 billion TOP 10 HOLDINGS Name Weighting Cenovus Energy 3.9% Chevron 3.7% Mastercard 3.5% Constellation Brands 34% Amazon.com 3.2% Alphabet 3.1% Centene 3.1% JPMorgan Chase 3.1%
Slide 17: Opportunity Fund: Characteristics
OPPORTUNITY FUND: CHARACTERISTICS ‘OPERATING EFFICIENCY ROA (Weighted Avg) 1.1% 6.2% ROA (Median) 5.0% 4.2% ROE 5-Yr (Weighted Avg) 19.0% 16.9% ROE 5-Yr (Median) 17.7% 12.5% ROIC (Weighted Avg) 12.7% 10.4% ROIC (Median) 10.9% 7.1% LEVERAGE Net Neht to FRITDA 17 24 Vv QUALITY Target Strong Operating
Slide 18: Opportunity Fund: Factor Tilts vs. R1000 Value
OPPORTUNITY FUND: FACTOR TILTS vs. R1000 VALUE QUALITY FACTORS 0.39 0.06 = -0.10 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 EXP
Slide 19: Opportunity Fund: Performance (CAMOX)
19 OPPORTUNITY FUND: PERFORMANCE Asof 930-2028 20% = CAMOX Russell 1000 Value 15% 10% : | “ . 5% 3023 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 6.30.1998 Since Inception 3Q23 YTD 1 Year 3 Year 5 Year 10 Year 6.301998 CAMOX -2.07% 6.56% 18.01% 11.21% 9.35% 9.51% 8.66% Russell 1000 Value -3.16%
Slide 20: Opportunity Fund: Performance (CAMWX)
OPPORTUNITY FUND: PERFORMANCE Asof 930-2028 20% mCAMWX Russell 1000 Value 15% 10% : | 5% 3023 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 6.30.1998 Since Inception 3023 YTD 1 Year 3 Year 5 Year 10 Year 6.30.1998 CAMWX -2.04% 6./2% 18.20% 11.40% 9.54% 9.13% 8.84% Russell 1000 Value -3.16% 179% 1
Slide 21: CAMOX: Risk/Return Profile
CAMOX: RISK/RETURN PROFILE As of 9-30-2023 RISK REWARD (TRAILING FIVE YEAR) 12.0 10.0 8.0 6.0 Annualized Return (%) 4.0 2.0 0.0 18.0 18.5 19.0 19.5 20.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMOX 3.0/ 0.96 95.28 0.4/ O74 102.69 91.34 Russell 1000 Value - 1.00 100.00 0.31 - 100.00 10
Slide 22: CAMWX: Risk/Return Profile
CAMWX: RISK/RETURN PROFILE As of 930.2023 RISK REWARD (TRAILING FIVE YEAR) 12.0 10.0 8.0 6.0 4.0 Annualized Return (%) 2.0 0.0 18.0 18.5 19.0 19.5 20.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMWX 3.24 0.97 95.28 0.48 0.79 103.10 91.13 Russell 1000 Value - 1.00 100.00 0.31 - 100.00 10
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 As of 930.2023 KEY FACTS SECTOR WEIGHTS + 35-45 holdings — equal weighted + Weights - Initial: 2.5% | Max: 4% + Market cap range: Primarily $2 - 12 billion Comm. Services Consumer Discretionary a consumer Staples iil ny == TOP 10 HOLDINGS [© nce _—$_—— Name Weighting Sector Health
Slide 26: SMID Fund: Characteristics
SMID FUND: CHARACTERISTICS As of 9-30-2023 OPERATING EFFICIENCY ROA (Weighted Avg) 8.3% 43% ROA (Median) 6.3% 1.3% ROE 5-Yr (Weighted Avg) 21.5% 12.8% ROE 5-Yr (Median) 15.2% 8.1% ROIC (Weighted Avg) 13.1% 7.3% ROIC (Median) 9.6% 4.0% LEVERAGE Net Debt to FRITDA 12 31 QUALITY Target Strong Operating
Slide 27: SMID Fund: Factor Tilts vs. R2500 Value
SMID FUND: FACTOR TILTS vs. R2500 VALUE ACTIVE FACTOR EXPOSURES As of 9-30-2023 QUALITY FACTORS VALUE/GROWTH FACTORS VOLATILITY FACTORS 0.50 0.32 | 0.14 |_| | | -0.16 -0.13 -0.42 -0.59 -0.59 Profitability Leverage Earnings Quality Earnings Yield Value Growth Beta Residual Volatility QUALITY VALUATIO
Slide 28: SMID Fund: Quality Profile
28 SMID FUND: QUALITY PROFILE ctrailing 5 Years) As of 9-30-2023 25.0 ROE 16.0 ROIC 14.0 20.0 12.0 15.0 10.0 g = 8.0 10.0 6.0 5.0 4.0 2.0 0.0 0.0 ZS228SSERSST PITRE RAggsg SRSA2fRFRRR PS PARIS agag Ses sFFSEFESS EE SESRERE Ss SSF 8S S58 SSF BSF SEF —Cambiar SMID Fund ——R2500V —Cambiar SMID Fund ——R2
Slide 29: SMID Fund: Performance (CAMMX)
29 SMID FUND: PERFORMANCE As of 930.2023 20% = CAMMX = Russell 2500 Value 15% 10% os im “5% 3023 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 5.31.2011 CAMMX -3.88% 2.56% 17.72% 13.35% 8.57% 9.22% 9.34% Russell 2500 Value -3.66% 1.95% 11.34% 13.32% 3.99% 6.95% 7.84% Performance for periods great
Slide 30: SMID Fund: Performance (CAMUX)
30 SMID FUND: PERFORMANCE As of 930.2023 20% = CAMUX 15% = Russell 2500 Value 10% . i i on im 5% 3023 YTD 1 Year 3 Year 5 Year 10 Year Since Inception 531.2011 CAMUX -3. 88% 256% 17.75% 13.44% 863% 9.27% 9.38% Russell 2500 Value -3.66% 1.95% 11.34% 13.32% 3.99% 6.95% 7.84% Performance for periods gr
Slide 31: CAMMX: Risk/Return Profile
CAMMxX: RISK/RETURN PROFILE As of 9-30-2023 RISK REWARD (TRAILING FIVE YEAR) 12.0 10.0 8.0 6.0 4.0 Annualized Return (%) 2.0 0.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMMX 4.39 0.85 93.33 0.41 0.69 94.27 80.39 Russell 2500 Value - 1.00 100.CO 0.21
Slide 32: CAMUX: Risk/Return Profile
CAMUX: RISK/RETURN PROFILE As of 930.2023 RISK REWARD (TRAILING FIVE YEAR) 12.0 10.0 8.0 6.0 4.0 Annualized Return (%) 2.0 0.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMUX 444 0.86 93.30 0.41 0.70 94.47 80.42 Russell 2500 Value - 1.00 100.00 0.21 - 1
Slide 33: How Do You Prove Consistency?
HOW DO YOU PROVE CONSISTENCY? Asof 930-2023 By continually ranking higher than our peers over a 10-year investment time horizon. CAMBIAR SMID FUND Trailing Returns: Percentile Rank vs Midcap Blend Peers 0% 6% 7% 25% 50% 75% 100% 1 Yr Return 3 Yr Return 5 Yr Return 10 Yr Return @ Cambiar SMID Fund (I
Slide 34: 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 35: Small Cap Fund: Profile
35 SMALL CAP FUND: PROFILE * Equal-weighted approach - forces discipline in a volatile asset class * — Invests in small companies with market capitalization range typically between $500 million - $5 billion + — Diversified across multiple sectors/industries Morningstar Category Inception Date Ticker
Slide 36: Small Cap Fund: Profile
SMALL CAP FUND: PROFILE As of 930.2023 KEY FACTS SECTOR WEIGHTS * 45-55 holdings — equal weighted * Weights - Initial: 2% | Max: 3.25% + Market cap range: Primarily $500 million - $5 billion Comm. Services Consumer Discretionary Consumer Staples i Energy TOP 10 HOLDINGS Financials RenaissanceRe Hold
Slide 37: Small Cap Fund: Characteristics
SMALL CAP FUND: CHARACTERISTICS As of 9-30-2023 ‘OPERATING EFFICIENCY ROA (Weighted Avg) 6.0% 2.7% ROA (Median) 5.3% 1.1% ROF 5-Yr (Weighted Avg) 11.4% B% ROE 5-Yr (Med an) 9.2% 6.6% ROIC (Weighted Avg) 9.4% 6.0% ROIC (Median) 8.0% 3.1% LEVERAGE Net Debt to EBITDA 0.8 34 Vv QUALITY Target Strong Ope
Slide 38: Small Cap Fund: Factor Tilts vs. R2000 Value
SMALL CAP FUND: FACTOR TILTS vs. R2000 VALUE QUALITY FACTORS 0.69 0.40 -0.60 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 39: Small Cap Fund: Quality Profile
SMALL CAP FUND: QUALITY PROFILE ctrailing 5 Years) As of 9-30-2023 16.0 ROE 10.0 ROIC 14.0 8.0 12.0 10.0 6.0 E 20 = 40 60 2.0 4.0 20 0.0 0.0 -2.0 SfSSFFV<SSSggesS PIs ggg SRS2SfSSSRL IS PARP RERL RR —Cambiar Small Cap Fund ~——R2000V Cambiar Small Cap Fund -——R2000V 0.8 PROFITABILITY FACTOR 6.0 NET D
Slide 40: Small Cap Fund: Performance (CAMSX)
SMALL CAP FUND: PERFORMANCE As of 930.2023 15% 10% : i i 7 _ | mCAMSX -5% = Russell 2000 Value -10% 3023 YTD 1 Year 3 Year 5 Year 10 Yeer Since Inception 8.31.2004 CAMSX -7.18% 0.21% 11.23% 9.69% 4.31% 5.00% 8.12% Russell 2000 Value -2.96% -0.63% 784% 13.32% 2.59% 6.19% 7.04% Performance for periods
Slide 41: Small Cap Fund: Performance (CAMZX)
SMALL CAP FUND: PERFORMANCE As of 930.2023 15% 10% : i a 7 _ | m= CAMZX “5% = Russell 2000 Value -10% 3023 yTD 1 Year 3 Year 5 Year 10 Year Since Inception 8.31.2004 CAMZX -7 24% 0.27% 11.33% 9.86% 449% 5.19% 8.29% Russell 2000 Value -2.96% -0.63% 784% 13.32% 2.59% 6.19% 7.04% Performance for period
Slide 42: CAMSX: Risk/Return Profile
CAMSX: RISK/RETURN PROFILE As of 9-30-2023 RISK REWARD (TRAILING FIVE YEAR) 6.0 5.0 4.0 3.0 2.0 Annualized Return (%) 1.0 0.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMSX 1.57 0.84 91.71 0.22 0.23 87.76 82.65 Russell 2000 Value - 1.00 100.00 0.16 - 1
Slide 43: CAMZX: Risk/Return Profile
CAMZX: RISK/RETURN PROFILE As of 930.2023 RISK REWARD (TRAILING FIVE YEAR) Annualized Return (%) ; 21.0 22.0 23.0 24.0 25.0 26.0 27.0 Standard Deviation RISK METRICS (TRAILING FIVE YEARS) CAMZX 174 0.85 91.76 0.23 0.25 88.17 82.58 Russell 2000 Value - 1.00 100.00 0.16 - 100.00 100.00 CAMBIAR 43 Sour
Slide 44: 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 45: 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 46: Definitions
DEFINITIONS 46 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 ne
Slide 47: 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. MSCI World ex. USA Index: The MSCI World ex. USA Index is a free float-adjusted, market
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