| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.7% | 0.1% | 6.2% |
| 2025 |
|---|
| 6.2% |
Vulcan Value Partners delivered positive returns across all strategies in 2025 while meaningfully improving price-to-value ratios. The manager draws parallels between current market conditions and the late 1990s dot-com era, noting AI stocks drove 61% of S&P 500 returns and largest market cap stocks dominated performance. While AI represents real disruption similar to the Internet, the manager warns against paying excessive valuations for trendy ideas. The firm maintains discipline by focusing on their MVP list of highest quality companies with sustainable competitive advantages. They reduced tech exposure while increasing healthcare and insurance holdings, finding opportunities in the 490 stocks outside the top 10 largest market cap names. Small Cap remains most discounted with price-to-value ratios in mid-50s. The manager highlights Medpace as example of successful value creation through share buybacks at deep discounts. Despite short-term relative underperformance, the firm believes improved margins of safety position portfolios well for long-term compounding while remaining fully invested.
Following disciplined value investing approach by owning highest quality businesses with sustainable competitive advantages at substantial discounts to intrinsic value, while the broader market focuses on AI and large cap stocks at elevated valuations.
Manager could not be more pleased with how portfolios are positioned for long-term compounding. All strategies have improved price-to-value ratios with Small Cap leading as most discounted. Believes portfolios are full of companies like Medpace that will compound values at attractive rates. Remains fully invested across all portfolios.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | CBRE, CRM, CSGP, FI, GOOGL, ITRN, KMX, MC.PA, MEDP, MSFT, QRVO, RE, RI.PA, RYAN, SSNC, SW.PA, SWKS, TRU, UNH | AI, healthcare, insurance, Quality, small caps, technology, value | - | Manager emphasizes value investing discipline, focusing on companies trading at substantial discounts to intrinsic value. Portfolio has improved price-to-value ratios across all strategies while delivering… |
| Oct 14 2025 | 2025 Q3 | CRM, GOOG, UNH | Artificial Intelligence, Defensive Growth, healthcare, Quality, regulation |
GOOGL US UNH US Salesforce Inc |
The funds performance benefited from Alphabet and UnitedHealth, both positioned for durable growth and strong cash generation. While Alphabet faced regulatory and AI disruption risks,… |
| Jun 30 2025 | 2025 Q2 | - | Capital Allocation, Concentration, price discipline, value, volatility | UNH | The commentary reinforces a concentrated value approach focused on businesses with stable values and attractive price-to-value gaps. Management highlights opportunistic buying during periods of extreme… |
| Apr 9 2025 | 2025 Q1 | AMZN, CRM, GOOG, MSFT, SWKS | - | - | - |
| Dec 31 2024 | 2024 Q4 | AMZN, CG, CRM, EG, GOOG, KKR, PGHN SW | - | - | - |
| Oct 9 2024 | 2024 Q3 | CBRE, KKR, LYV | - | - | - |
| Jul 12 2024 | 2024 Q2 | CSGP, GOOG | - | - | - |
| Apr 25 2024 | 2024 Q1 | AMZN, CRM, GE, KKR, MSFT, TDG | - | - | - |
| Jan 17 2024 | 2023 Q4 | AMZN, CBRE, CG, CRM, KKR, MSFT, TDG | - | - | - |
| Oct 10 2023 | 2023 Q3 | - | - | - | - |
| Jul 31 2023 | 2023 Q2 | AMZN, GOOG, MSFT, TDG | - | - | - |
| Mar 31 2023 | 2023 Q1 | GEHC, MSFT | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
BuybacksShare repurchases in 2024 and 2025 hit consecutive records as companies raced to meet Tokyo Stock Exchange capital efficiency mandates. Buybacks were a primary driver of the market's 20% climb in the first half of FY2025. |
Share Repurchases Capital Efficiency TSE Mandates Shareholder Returns Records | |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
AI Integration |
|
GrowthThe fund focuses on identifying businesses where deep research can uncover gaps between market expectations and long-term reality. The strategy targets companies with potential for mid-teens or better compound returns over decades, emphasizing businesses with accelerating sales and earnings growth. |
Compounding Long-term Outperformance Returns Fundamentals | |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech | |
| 2025 Q2 |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | GOOGL US | Alphabet Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, profitability, Regulation, Search | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | UNH US | UnitedHealth Group Inc | Health Care | Managed Health Care | Bull | NYSE | cash flow, growth, healthcare, Insurance, managed care, Optum, valuation | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | Salesforce Inc | NASDAQ | Information Technology | Application Software | Bull | - | AI, cloud, CRM, enterprise, Margins, SaaS, Software | Login |
| Jun 30, 2025 | Fund Letters | C.T. Fitzpatrick | UNH | UnitedHealth Group, Inc. | Health Care | Managed Health Care | Bull | New York Stock Exchange | Margins, Medicare, Regulation, Repricing, Scrutiny, turnaround, Utilization | Login |
| TICKER | COMMENTARY |
|---|---|
| CBRE | CBRE Group Inc. was an excellent investment for us. As the world's largest commercial real estate services company, CBRE has a market-leading position in leasing and property sales brokerage. We purchased shares in June 2022 at peak concern regarding the future of the office due to remote work, rising interest rates, and a weakening economy. CBRE's value grew over the course of our ownership, but its share price rose faster, and we reallocated capital to more discounted businesses. |
| CRM | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| CSGP | The shares of CoStar Group, Inc., the global leader in digitizing real estate, declined in the fourth quarter, due to concerns that the company's residential Homes.com platform will continue to require significant capital investment and competitive worries that Google's new real estate advertisement format and Zillow's OpenAI partnership could divert traffic from Homes.com in the years ahead. |
| FI | Notable detractors from performance came from Fiserv (-43bps absolute and -39bps relative) |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| ITRN | Ituran provides stolen vehicle recovery services, primarily in Israel, Brazil, and other parts of Latin America and was a material contributor during the quarter and year. Using a device installed in the car, Ituran is able to detect when a vehicle has been stolen, notify law enforcement, and assist in the locating and recovery of the vehicle. Ituran's customers include auto OEMs, individual drivers, and insurance companies. 70% of its revenue comes from ongoing subscriptions. Ituran performed well in 2025, with YTD revenue up +5%, while the EBITDA margin has contracted slightly due to currency headwinds. In May, the company announced a major agreement with Stellantis, which covers multiple countries in South America over a multiyear period. In November, they announced a new 3-year agreement with Renault in Latin America. We continue to like Ituran's business and believe it trades at a substantial discount to intrinsic value. |
| KMX | Over the past five years, CarMax's shares declined by 62%, while Carvana's shares rose by 73%, leaving CarMax's market capitalization at roughly one-tenth of Carvana's today. |
| MC.PA | Top gainers among the Fund's holdings included LVMH (+24%) |
| MEDP | Medpace was the Fund's largest contributor in H1 FY26, having been among its largest detractors over the prior 12 months. Medpace is a US-listed clinical research organisation focused on small biotechnology companies. After four consecutive quarters of elevated project cancellations, Medpace delivered a strong inflection in fundamentals, reporting very robust net bookings growth in Q2 and Q3 FY25, alongside stronger-than-expected guidance for FY26. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| QRVO | We believe Skyworks' merger with Qorvo will be a long-term positive, and we see room for rising demand from both industrial and mobile applications. |
| RE | In many ways we have come full circle with Everest Group – it is an old friend. We owned Everest RE, now called Everest Group, for 11 years in our Small Cap strategy during which it grew into a large cap, and we purchased it in our Large Cap program as well. We sold it out of both portfolios in 2020 to reallocate capital to companies with larger margins of safety. In the third quarter of 2023, we repurchased Everest Group in our Large Cap strategy. Despite steady value per share growth, Everest Group's stock price declined in 2024 and 2025 so we were able to buy it again in our Small Cap strategy. Everest Group is one of the top reinsurance companies in the world. They also have a meaningful primary insurance segment. Everest Group's quarterly numbers can be volatile, but over a cycle the company produces positive underwriting results. An underwriting loss is the cost of funds from premiums paid to an insurance company. An underwriting profit means that those funds do not have a cost. In fact, it means the insurance company is being paid to keep your money. They are able to invest these funds and earn investment income. Insurance companies that produce underwriting profits should trade at a meaningful premium to tangible book value. Everest Group, on the other hand, trades at a discount to tangible book value. The company realizes that its shares are significantly undervalued and is using its free cash flow to repurchase stock which positively impacts our value per share growth. We are thrilled to have the opportunity to own this well-managed leading insurance company again. |
| RI.PA | Pernod Ricard declined due to concerns about slowing global spirits demand. While these headwinds persist, we remain confident in Pernod's strong brand portfolio and pricing power, which should support long-term prospects. |
| RYAN | Ryan Specialty Holdings, Inc. is a commercial excess and surplus insurance broker with a delegated authority business. The company was founded by Pat Ryan in 2010. Pat Ryan is one of the insurance industry's crucial pioneers, having also founded Aon where he served as the CEO and Chairman for 41 years. The excess and surplus market has grown at an 11% CAGR while the admitted market has grown at a 4% CAGR over the last 25 years. The portion of Ryan Specialty's business exposed to commercial property is entering a soft pricing cycle, which has pushed the stock well below intrinsic value. |
| SSNC | SS&C Technologies Holdings Inc represents 2.68% of top holdings |
| SW.PA | We added to our position in Sodexo, the French food services and facilities-management company we began buying in the third quarter. The purchases were made at prices we believe are still attractive, and Sodexo is now a significant position in all four funds. |
| SWKS | Semiconductor company Skyworks traded down during the quarter on weaker forward guidance and concerns around mobile demand and customer concentration. This occurred despite better-than-expected quarterly results and the announced acquisition of competitor Qorvo, creating a combination of the second- and third-largest players in radio frequency smartphone component suppliers. |
| TRU | TransUnion is one of the three leading credit bureaus in the U.S. They collect consumer borrowing and payment data from over 95,000 financial institutions and generate a credit report and credit score, which is then sold to lenders, insurance companies, landlords, and others. TransUnion has also been diversifying beyond just credit reports and credit scores. Their consumer business includes free and subscription-based tools that enable consumers to manage their personal finances and shop for financial products, including loans and insurance. Lenders, insurance companies, and other financial services companies then purchase leads from TransUnion to target those consumers. TransUnion also has other business lines that utilize its existing consumer data, including insurance, marketing, fraud detection, identity verification, and tenant screening. TransUnion historically has grown organically in the high single digits with an attractive 30% operating margin, generating high returns. They operate in an oligopoly industry and compete with the likes of Experian and Equifax, which are also MVP businesses. They have massive data sets using both public and proprietary data. Their customers embed TransUnion's products into their own workflows. TransUnion has also been successfully deleveraging its balance sheet and is now placing a much greater emphasis on share buybacks. We have followed this business for many years and are happy to own it. |
| UNH | We also added back a full position in UnitedHealth |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
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