Celebrating 50 Years of Cambiar Investors

As Cambiar celebrates its 50th anniversary, we delve into the significant events that unfolded in the stock market over the past five decades and explore Cambiar's resilience.

Nov 14, 2023

Cambiar Investors was incepted in 1973 amidst one of the worst bear markets seen since the Great Depression. Originally planned to be named Barish Investments in honor of its founder, Michael Barish, the resemblance to the term “bear” was considered too similar, particularly due to the market conditions during that period. Instead, Mike opted for the name Cambiar, derived from the Spanish word “to change”, symbolizing the perpetual evolution of the markets. Rather than attempting to predict such occurrences, the focus lies in the ability to adeptly respond to and adjust to them. The 1973-1974 bear market was a poignant reminder of this. The Dow Jones reached its pinnacle in 1973 at a staggering 1052 points. However, come mid-1974, the Dow lost almost half its value, dwindling to 578 points.

In the early 1970s, the Bretton Woods monetary system, which had anchored global currency values, began to unravel. This unraveling was exacerbated by America’s decision to abandon the gold standard, leading to volatility in currency markets and shaking investor confidence. The bear market’s intensity was amplified by the 1973 oil crisis, initiated by OPEC’s oil embargo in response to geopolitical tensions. The resulting skyrocketing oil prices led to stagflation – simultaneous high inflation and high unemployment – creating a perplexing economic environment. Escalating inflation eroded purchasing power, while high unemployment strained consumer confidence and business investment. The resignation of President Richard Nixon in August 1974 amidst the Watergate scandal further rattled the foundations of stability. The political turmoil and subsequent loss of confidence in the U.S. government’s ability to manage economic affairs cast a cloud of uncertainty over financial markets. The Watergate hearings and potential impeachment added to the problems known as “The Three I’s” – inflation, interest rates, and impeachment.

The stock market bore the brunt of these economic challenges with steep sell-offs, panicky investor sentiment, and extreme market volatility. As the bear market unfolded, investors grappled with the difficult decision of whether to hold or sell their investments. Some investors remained hopeful for a swift recovery, while others fled the market in fear.

While the market eventually found its footing, the road to recovery was neither swift nor painless. It took nearly a decade for the U.S. stock market to recover its previous value. Although this seemed like an incredibly challenging time to start an investment firm, Cambiar succeeded with a simple strategy of identifying resilient, high-quality companies that are capable of withstanding market volatility. This market downturn set the stage for a disciplined approach that has remained throughout the firm’s history.

The 1980s were a transformative decade in many aspects, from culture and technology to politics and finance. Lasting nearly a decade, the bull market of 1982-1987 was a period of economic expansion marked by the power of pro-growth policies, the significance of innovation, and the importance of a long-term investment perspective.

To appreciate the significance of the 1980s bull market, we must first understand the economic backdrop against which it unfolded. The late 1970s were characterized by stagflation—a toxic combination of stagnant economic growth and rising inflation. The Federal Reserve, under Chairman Paul Volcker, took drastic measures to combat inflation, raising interest rates to historic levels. This move had a profound impact on the economy, but it was a necessary step towards taming runaway inflation.

The turning point for the stock market came with the election of Ronald Reagan as President of the United States in 1980. Reagan’s administration introduced pro-business policies, such as tax cuts, deregulation, and reduced government spending. Investors responded enthusiastically to Reagan’s economic vision, and the stock market began its climb. The Dow Jones Industrial Average, which had languished below 1,000 for several years, started to ascend.

The 1980s also witnessed the birth of the personal computer industry, led by companies like Apple and Microsoft. These tech pioneers were at the forefront of innovation, and their meteoric rise contributed significantly to the bull market. Investors recognized the potential of this emerging sector, pouring money into technology stocks.

During this growth period, Cambiar focused on building a diversified portfolio of stocks that would deliver throughout market cycles. Although there were many exciting innovations, the goal was to be able to adapt and withstand volatile times in the market. This was exemplified during Black Monday, the day that ended this bull market run.

Black Monday refers to October 19, 1987, a day that saw one of the most severe stock market crashes in history. Within a span of just one day, the DJIA plummeted by 22.6%, solidifying its place as the largest single-day decline to this day. It was a day of turmoil and panic as stock markets around the world plummeted, sending shockwaves through the financial landscape.

The cause of this massive crash cannot be attributed to one specific factor or event. Rather, several factors contributed to the sudden and dramatic crash. One key component was the rapid growth of computerized trading and program trading strategies, which relied on complex algorithms to execute trades automatically. These automated techniques increased the impact of selloffs, which increased market volatility. Another contributing element was the excessive speculation and overvaluation of stocks in the preceding months. The market had been experiencing a period of rapid expansion, fueled by a sense of overconfidence, and sparking concerns of an asset bubble. When worries about the sustainability of this bubble surfaced, panic selling erupted. Additionally, portfolio insurance, a growing phenomenon at the time, amplified the decline. Portfolio insurance is hedging a portfolio of stocks against market risk by short selling stock index futures, which limits potential losses in stock price declines, without having to sell those stocks. As computer programs began liquidating stocks when certain loss targets were hit, prices fell. Consequently, a chain reaction ensued, with declining markets triggering additional stop-loss orders, while bid activity halted.

Fortunately, the stock markets were able to swiftly regain a significant portion of their Black Monday losses. Within two trading sessions, the DJIA rebounded by 288 points, accounting for a remarkable 57% recovery of the Black Monday decline. Governments and central banks around the world responded with interventions, including interest rate cuts and liquidity injections, to stabilize the markets. It prompted policymakers and market participants to re-evaluate risk management strategies and implement circuit breakers to temporarily halt trading during extreme volatility. Within two years following the crash, the U.S. stock markets had exceeded their pre-crash levels.

The fear and panic that gripped investors on Black Monday demonstrated how emotions can quickly drive market movements as much as economic fundamentals. The saying “it’s not about timing the market, but about time in the market” encapsulates the idea that you cannot consistently predict how or when the market will change. Cambiar’s disciplined approach to investing ensures that even in times of uncertainty, Cambiar can weather the storm by responding appropriately to volatile moments that inevitably arise in the market over time.

The Asian Financial Crisis, which began in 1997, stemmed from a combination of structural weaknesses and external shocks. Prior to the crisis, several Asian economies, known as the “Asian Tigers” (including Thailand, Indonesia, South Korea, and Malaysia), experienced rapid economic growth and attracted significant foreign investment. However, vulnerabilities were brewing beneath the surface, including overborrowing, weak financial systems, and excessive reliance on short-term foreign capital.

The crisis was triggered by Thailand’s decision to devalue its currency, the Thai baht, in July 1997. This move exposed the fragility of the once thriving financial systems in the region. In particular, there had been a buildup of financial leverage and doubtful loans due to swift domestic credit expansion with insufficient oversight. Overheating domestic economies and real estate markets magnified risks, heightening reliance on foreign savings, resulting in mounting current account deficits and increased external debt . Furthermore, corporations and banks faced exchange rate and funding risks due to substantial short-term foreign borrowing obscured by longstanding currency pegs. Consequently, when these pegs proved unsustainable, companies grappled with sharp increases in the local currency value of external debts, triggering widespread financial distress.

This crisis unfolded rapidly, leading to sharp currency depreciations, soaring interest rates, and a severe recession in affected countries. Stock markets plunged, businesses collapsed, and unemployment soared. Countries that were once applauded for their economic progress were now grappling with a financial storm. The International Monetary Fund (IMF) stepped in to provide financial assistance to affected countries, but the severe measures and structural reforms aggravated the economic pain for citizens. As nations struggled to rebuild, they were compelled to reevaluate their financial structures, regulatory frameworks, and risk management practices.

Amidst the turmoil, we welcomed our current president and CIO, Brian Barish, who opened Cambiar’s International Equity strategy. Prior to joining Cambiar, Brian served as Director of Emerging Markets Research for Lazard Freres & Co., a New York-based investment bank. While the timing of this felt ominously similar to the firm’s beginning in the bear market of 1973-1974, Brian’s knowledge and experience allowed him to identify quality international companies that were trading at extremely low valuation levels. In 1999, the endpoint of Asia’s recovery, Cambiar’s International Equity strategy outperformed its benchmark by 44% (4,386 bps), echoing the importance of transparency and sound governance when building a portfolio.

	1999 PERFORMANCE
Cambiar International Equity (g)	73.16
Cambiar International Equity (n)	70.82
MSCI EAFE	26.96

*See Disclosure – Performance.

The late 1990s and early 2000s were marked by a meteoric rise in technology stocks, a period known as the dot-com bubble. From January 1995 to March 2000, the NASDAQ Composite Index rose 583%, from 751 to 5,133. However, from March 2000 to October 2002, the NASDAQ fell 76% to 1,108, erasing substantial gains that were built in the bubble.

The dot-com bubble was fueled by a perfect storm of technological innovation and boundless optimism about the potential of the internet. As the World Wide Web became more accessible, companies rushed to establish an online presence, promising new business models, exponential growth, and unimaginable profits. Investors, caught up in the excitement, poured vast amounts of capital into companies with catchy names and little to no profits. Start-ups with little more than a website and a lofty business plan were valued at astronomical levels, and stock prices soared to unsustainable heights.

One of the defining characteristics of the dot-com bubble was the disconnect between traditional valuation metrics and the soaring prices of tech stocks. Investors were drawn by the potential for future profits, ignoring traditional measures such as price-to-earnings ratios. As a result, companies with no tangible earnings were valued at levels that defied reason.

The euphoria could not last indefinitely. Some companies, once darlings of the stock market, faced difficulties in generating revenue and profits. Skepticism grew, and investors started to question the sustainability of the valuations. The Nasdaq Composite, a tech-heavy stock index, peaked in March 2000, marking the end of the bubble. Over the next two years, the market experienced a steep decline. Companies that were once considered the future of business collapsed, and investors were left with substantial losses.

Within Cambiar, there were reservations about the viability of tech businesses – our analysts did their best to ignore the noise. While the bubble was growing, many value managers were struggling, as they had high weightings in sectors like Finance, Utilities, and Energy. With a diversified portfolio, Cambiar was able to stay in line with the benchmarks during the bubble, and then outperform once it burst.

Cambiar’s Large Cap Value strategy, the sole domestic offering at the time, was a strong example of this. While the Large Cap strategy fell short of the Russell 1000 Value benchmark in 2000 while the bubble was peaking, it went on to outperform in four of the next five years, a period when others grappled with significant declines. The dot-com bubble was a stark reminder of the dangers of speculative investing driven by euphoria rather than sound fundamentals.

*See Disclosure – Performance

The origins of The Great Recession can be traced back to the housing market bubble that had been steadily growing over a number of years. This recession followed an extended period of growth in the U.S. housing market, including home prices and housing credit, from the 1990s to mid-2000’s. In the early 2000s, banks began issuing risky mortgages to borrowers with limited creditworthiness, and these mortgages were then bundled into mortgage-backed securities (MBS). A lack of transparency and oversight allowed these securities to spread throughout the global financial system.

“Like a sick person suffering from some kind of food poisoning, the financial system is in its own way attempting to excise the bad assets, insolvent businesses, and mispriced obligations.”
– Brian Barish, 2008
Cambiar President

In December 2007, the United States plunged into a recession, triggering a tumultuous market environment that affected a number of major financial institutions. Home prices began to fall, causing hardship to many Americans. The value of their homes had dropped below the price they initially paid and selling their houses without incurring debt to their lenders became an impractical option. The individuals most at risk, particularly those classified as subprime borrowers, found themselves locked into mortgages they had initially been unable to afford. Consequently, these subprime lenders swiftly initiated a sequence of bankruptcy filings. The September 2008 collapse of Lehman Brothers, a prominent investment bank, sent shockwaves through the financial world, triggering a chain reaction of panic and fear. Confidence in the financial system evaporated, leading to a freezing of credit markets and a severe liquidity crunch.

The economy suffered dire consequences as well. Unemployment soared, consumer spending plummeted, and businesses faced a credit crunch that hindered their operations. Governments around the world scrambled to respond, implementing emergency measures to stabilize financial institutions and inject liquidity into the markets.

The 2008 financial crisis served as a harsh wake-up call, revealing significant weaknesses in financial systems and regulatory oversight. Cambiar, like many others, felt the pain of the market during that time but remained calm and quickly adapted. While many others were still recovering, all of Cambiar’s available strategies notably exceeded their respective benchmarks in 2009 and 2010*.

*This includes our Large Cap Value, Small Cap Value, Global Equity, International Equity, and International Equity ADR strategies. See Disclosure – Performance.

While the market has experienced sustained periods of both growth and collapse, it has historically performed well. Following the 2008 financial crisis, the 2009-2020 bull market was a period marked by significant economic growth and a resurgence of optimism in the investment landscape. Companies achieved record profits in the 2010s thanks to the combination of near-zero interest rates and consistent economic growth. This bull market lasted 132 months, the second longest bull market in S&P 500 history, with a gain of 400.5%. Despite setbacks and concerns, the market continued to climb higher, and investors who remained committed to a long-term strategy were rewarded.

This period witnessed the remarkable ascent of technology companies. Tech giants like Apple, Amazon, Microsoft, and Alphabet (Google) played a pivotal role in driving market recovery. The increasing reliance on digital solutions, cloud computing, and e-commerce fueled their growth. While technology stocks garnered much of the spotlight during this bull market, diversification remained a critical strategy for investors. Industries such as healthcare, consumer staples, and utilities also provided solid returns and stability, highlighting the significance of a well-rounded portfolio.

Towards the end of this period, Cambiar began to create a modern definition for the relative value investment process that we have used for the past 50 years. In 2021, we introduced our Quality, Price, Discipline (QPD) approach, which encapsulates the message that a sound investment philosophy should begin with a goal of being price sensitive buyers of high-quality assets. Although our approach never changed, this gave us a definitive idea of what we consider value investing in any given landscape. Our goal is to deliver superior risk-adjusted returns through the market cycle via a disciplined pursuit of high-quality companies at an attractive price.

The outbreak of the COVID-19 pandemic in early 2020 brought about a global crisis that transcended public health and rippled through various aspects of society, including the financial markets. As news of the coronavirus spread, the stock market initially responded with uncertainty. However, as the virus quickly escalated into a global pandemic, investor sentiment shifted dramatically. The rapid spread of COVID-19 led to lockdowns, travel restrictions, and widespread economic disruptions, triggering a seismic shock to the financial world.

“While we have been more active over the last few weeks than usual, the vast majority of the portfolios remain in place, as the underlying companies were actively selected for their durable business characteristics, attractive prospects for future value creation, robust financial characteristics, and the unique drivers of return that we believe they bring to the portfolio.” – Andrew Baumbusch, 2020
Cambiar Investment Principal

The onset of the pandemic in early 2020 saw a steep and swift decline in stock markets around the world. Investors engaged in panic selling, fearing the economic ramifications of widespread lockdowns. COVID-19 created unprecedented uncertainty, leading to extreme volatility in the stock market. Daily price swings were more pronounced than usual, with investors struggling to predict the virus’s trajectory and its economic implications. This environment of uncertainty intensified risk aversion and influenced investment decisions.

Additionally, the pandemic’s impact on different sectors of the economy was uneven. While industries such as technology, e-commerce, and healthcare experienced growth, others like travel, hospitality, and energy were severely affected. As remote work became the new norm, technology companies played a pivotal role in driving the market recovery. The increased reliance on digital solutions, cloud computing, and e-commerce fueled the growth of tech giants, contributing to a divergence in stock performance between tech and traditional sectors. It even led to a rise of concepts like “meme stocks”, or stocks that gained attention on social media, due to retail investors who flocked to the stock market during the pandemic. COVID-19 emphasized the importance of maintaining a diversified portfolio consisting of companies capable of withstanding unpredictable market turbulence.

Governments around the world responded to the crisis with massive fiscal and monetary stimulus packages to support economies and stabilize financial markets. Central banks lowered interest rates and implemented quantitative easing, while governments provided financial aid to businesses and individuals. These interventions helped calm market turbulence to some extent.

While the initial shock of the pandemic led to historic market declines, the stock market exhibited resilience and began a gradual recovery. As vaccines became available and economies adapted to new norms, investor sentiment improved. Furthermore, as we have reflected on the past five decades, this pandemic, though devastating, showcased the ability and growth of markets to adapt and recover, fueled by innovation and resilience.

“My proudest accomplishment is not a specific moment in time. It’s really the achievement of a strong and very positive company culture. I’ve always felt that there was a reason why Cambiar endured. There’s a reason why Cambiar had a lot of really loyal employees who cared about this place, and it was that culture.”-Brian Barish, 2023

Cambiar Investors’ journey through decades of financial volatility reflects its commitment to adaptability, discipline, and resilience. As markets continue to evolve, we remain steadfast in our mission to identify great companies at great prices, ensuring our clients thrive in an ever-changing financial landscape.

The market’s inherent volatility means that unexpected events can have significant and unforeseeable effects. A prudent investment approach involves diversification, a long-term perspective, and a focus on fundamentals. After summarizing the stock market’s inherent unpredictability over the past 50 years, we also understand the importance of humility when making investment decisions.

As Cambiar celebrates its 50-year anniversary, the firm’s primary focus is on expanding its operations, even amidst a backdrop where several asset managers are scaling down. Brian Barish, President & CIO of Cambiar, believes the current economic conditions are favorable for value investing, and utilizing the firm’s Quality, Price, Discipline (QPD) investment approach will position Cambiar to seize opportunities as they arise in the market.

A heartfelt thanks goes out to those whose unwavering support has been the foundation of our success. To every client who has stood by our side, we extend our deepest gratitude. Your trust has been the cornerstone of our growth and longevity.

As we celebrate this remarkable journey, we also look forward to the road ahead, filled with new opportunities and possibilities. Here’s to 50 years of excellence, and to everyone who has made it all worthwhile.

Bibliography

Bernhardt, D., & Eckblad, M. (2013). Stock market crash of 1987. Retrieved from https://www.federalreservehistory.org/essays/stock-market-crash-of-1987

Hayes, A. (2021). Black Monday: Definition in stocks, what caused it, and losses. Retrieved from https://www.investopedia.com/terms/b/blackmonday.asp

Carson, M., & Clark, J. (2013). Asian Financial Crisis. Retrieved from https://www.federalreservehistory.org/essays/asian-financial-crisis

Weinberg, J. (2013). The Great Recession and Its Aftermath. Retrieved from https://www.federalreservehistory.org/essays/great-recession-and-its-aftermath

Duggan, W. (2023). A History Of U.S. Bull Markets, 1957 to 2022. Retrieved from https://www.forbes.com/advisor/investing/bull-market-history/

Disclosures

Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar. Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. The information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation. Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook and are not intended to represent the performance or be an indicator for how the accounts have performed or may perform in the future. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time.

Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts may be based upon third-party sources that are deemed to be reliable; however, Cambiar does not guarantee its accuracy or completeness. Past performance is no indication of future results. All material is provided for informational purposes only, and there is no guarantee that the opinions expressed herein will be valid beyond the date of this communication.

Performance – as of 9.30.2023

Large Cap Value

Inception Date: 12.31.1998. Performance data as of 9.30.23. The performance information depicted above represents Cambiar’s Large Cap Value Composite (Institutional). Returns are presented gross (g) and net (n) of management fees. Gross and net returns have been reduced by transaction costs. Net returns are also reduced by actual investment advisory fees and other expenses that may be incurred in the management of the account. Net of fees performance reflects a blended fee schedule of all accounts within the Large Cap Value Composite (Institutional). Cambiar clients may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Fees will vary based on the assets in the accounts. Returns are reported in U.S. dollars.

Performance results for the Large Cap Value Composite (Institutional) are evaluated against the Russell 1000® Value Index. The Russell 1000 Value Index is a float-adjusted, market capitalization-weighted index of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which consists of 3,000 of the largest U.S. equities. The index assumes no management, custody, transaction or other expenses. The Russell 1000 Value Index is a broadly based index that reflects the overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the Russell 1000 Value Index include the reinvestment of all income. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.

Small Cap Value

Inception Date: 11.30.2004. Performance data as of 9.30.23. The performance information depicted above represents Cambiar’s Small Cap Value Composite. Returns are presented gross (g) and net (n) of management fees. In 2022, as well as periods prior to 2014, the composite also contains accounts with “pure” gross performance. Gross returns are reduced by transaction costs. “Pure” gross returns do not reflect the deduction of any expenses, including transaction costs. “Pure” gross returns are applicable to separately managed accounts that are part of broker-affiliated or broker-sponsored programs, including wrap programs, that waive commission costs or bundle fees including commissions (SMAs). “Pure” gross returns are supplemental information. Net returns are reduced by transaction costs and actual investment advisory fees and other expenses that may be incurred in the management of the account. SMAs often incur bundled fees, charged by the wrap sponsor or affiliated broker, that may include transaction costs, investment management, portfolio monitoring, consulting services, and custody fees. Net returns for SMAs are calculated by deducting the investment advisory fees from the client’s account as reported by the wrap sponsor or affiliated broker, or as received by Cambiar. Cambiar clients may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Fees will vary based on the assets in the accounts. Returns are reported in U.S. dollars.

Performance results for the Small Cap Value Composite are evaluated against the Russell 2000® Value Index. The Russell 2000 Value Index is a float-adjusted, market capitalization-weighted index comprised of firms in the Russell 2000® Index that experience lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index is a float-adjusted, market capitalization-weighted index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which consists of 3,000 of the largest U.S. equities. The index assumes no management, custody, transaction or other expenses. The Russell 2000 Value Index is a broadly based index that reflects the overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the Russell 2000 Value Index include the reinvestment of all income. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.

International Equity ADR

Inception Date: 2.28.2006. Performance data as of 9.30.23. The performance information depicted above represents Cambiar’s International Equity ADR Composite. Returns are presented gross (g) and net (n) of management fees. The composite contains accounts with gross and “pure” gross performance. Gross returns are reduced by transaction costs. “Pure” gross returns do not reflect the deduction of any expenses, including transaction costs. “Pure” gross returns are applicable to separately managed accounts that are part of broker-affiliated or broker-sponsored programs, including wrap programs, that waive commission costs or bundle fees including commissions (SMAs). “Pure” gross returns are supplemental information. Net returns are reduced by transaction costs and actual investment advisory fees and other expenses that may be incurred in the management of the account. SMAs often incur bundled fees, charged by the wrap sponsor or affiliated broker, that may include transaction costs, investment management, portfolio monitoring, consulting services, and custody fees. Net returns for SMAs are calculated by deducting the investment advisory fees from the client’s account as reported by the wrap sponsor or affiliated broker, or as received by Cambiar. Cambiar clients may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Fees will vary based on the assets in the accounts. Returns are reported in U.S. dollars.

Performance results for the International Equity ADR Composite are evaluated against the MSCI EAFE Index. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted, market capitalization-weighted index that is designed to measure developed market equity performance, excluding the U.S. & Canada. The index assumes no management, custody, transaction or other expenses. The MSCI EAFE Index is a broadly based index that reflects the overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the MSCI EAFE Index include the reinvestment of all income. Benchmark returns are net of withholding taxes. Prior to July 2019, Cambiar typically followed each custodian’s treatment of tax withholding, and therefore dividends may have been presented as gross or net of dividend tax withholding depending on the custodian’s treatment. As of July 2019, Cambiar typically records dividends net of withholding taxes although it may depend on various factors such as the issue country and custodian’s treatment. Withholding taxes may vary according to the investor’s domicile, and other reasons. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.

International Equity

Inception Date: 10.31.1997. Performance data as of 9.30.23. The performance information depicted above represents Cambiar’s International Equity Composite. Returns are presented gross (g) and net (n) of management fees. Gross and net returns have been reduced by transaction costs. Net returns are also reduced by actual investment advisory fees and other expenses that may be incurred in the management of the account. Net of fees performance reflects a blended fee schedule of all accounts within the International Equity Composite. Cambiar clients and mutual fund investors may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Fees will vary based on the assets in the accounts. Returns are presented in U.S. dollars.

Performance results for the International Equity Composite are evaluated against the MSCI EAFE Index. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted, market capitalization-weighted index that is designed to measure developed-market equity performance, excluding the U.S. & Canada. The index assumes no management, custody, transaction or other expenses. The MSCI EAFE Index is a broadly based index that reflects the overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the MSCI EAFE Index include the reinvestment of all income. Benchmark returns are net of withholding taxes. Prior to July 2019, Cambiar typically followed each custodian’s treatment of tax withholding and therefore dividends may have been presented as gross or net of dividend tax withholding depending on the custodian’s treatment. As of July 2019, Cambiar typically records dividends net of withholding taxes although it may depend on various factors such as the issue country and custodian’s treatment. Withholding taxes may vary according to the investor’s domicile, and other reasons. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.

Global Equity

Inception Date: 2.28.1998. Performance data as of 9.30.23. The performance information depicted above represents Cambiar’s Global Equity Composite. Returns are presented gross (g) and net (n) of management fees. For the periods of 2013 to 2017, the gross returns reflect accounts with both gross and “pure” gross performance. Gross returns are reduced by transaction costs. “Pure” gross returns do not reflect the deduction of any expenses, including transaction costs. “Pure” gross returns are applicable to separately managed accounts that are part of broker-affiliated or broker-sponsored programs, including wrap programs, that waive commission costs or bundle fees including commissions (SMAs). “Pure” gross returns are supplemental information. Net returns are reduced by transaction costs and model investment advisory fees and other expenses that may be incurred in the management of the account. Net returns are calculated by subtracting the highest strategy fee (0.60% annually/0.05% monthly). The management fee schedule for separate accounts managed to the Global Equity strategy is as follows: 0.60% on the first $25 million; 0.50% on the next $50 million; 0.35% thereafter. Cambiar clients may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Fees will vary based on the assets in the accounts. Returns are reported in U.S. dollars.

Performance results for the Global Equity Composite are evaluated against the 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. The index assumes no management, custody, transaction or other expenses. The MSCI World Index is a broadly based index that reflects overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the MSCI World Index include the reinvestment of all income. Benchmark returns are net of withholdings taxes. Prior to July 2019, Cambiar typically followed each custodian’s treatment of tax withholding and therefore dividends may have been presented as gross or net of dividend tax withholding depending on the custodian’s treatment. As of July 2019, Cambiar typically records dividends net of withholding taxes although it may depend on various factors such as the issue country and custodian’s treatment. Withholding taxes may vary according to the investor’s domicile, and other reasons. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.
Performance presented is intended for institutional client use only. For more information, please access our GIPS Reports here

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