The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Vulcan Value Partners delivered 9.0% net returns in Q2 2026 for their All Cap strategy, though the portfolio remains down 5.7% year-to-date. Despite attractive absolute returns, price-to-value ratios remained virtually unchanged as portfolio companies reported solid results, generated strong free cash flow, and repurchased discounted shares, causing values to compound nicely. The manager reallocated capital from companies whose stock prices increased more than intrinsic values into those trading at larger discounts. Key purchases included Veeva Systems, Equifax, and ServiceNow, all acquired at significant discounts due to perceived AI disruption risks that the manager believes are unfounded. These software businesses possess proprietary data, mission-critical platforms, and embedded customer relationships that make them resilient to AI disruption. UnitedHealth was sold after recovering from earlier lows, with capital redeployed to more discounted opportunities. The manager emphasizes that portfolio companies remain deeply out of favor but significantly more undervalued than what is currently working in the market, creating what they view as a fantastic opportunity for long-term investors. The CIO personally added capital at quarter-end.
Vulcan owns a collection of some of the finest businesses in the world at roughly 50 cents on the dollar, with companies that remain deeply out of favor but whose values continue to rise steadily, creating a fantastic opportunity for serious long-term investors.
The manager believes the portfolios own exceptional businesses at roughly 50 cents on the dollar with steady value growth and substantial margins of safety. They view current market conditions as an excellent time to add capital, as the manager personally did at the end of the first quarter. The combination of steady value growth and substantial margin of safety is expected to lead to outsized returns over longer periods of time.
As of Jul 23, 2026
The Small Cap Fund typically holds 20-40 positions in businesses up to the largest market capitalization in the Russell 2000 Index. Core positions are generally 5% of portfolio with position sizes being valuation-driven. Portfolio includes 24-26 stocks with weighted average market cap of $4.7 billion and median market cap of $3.5 billion. The fund maintains low turnover of 21.7-29% consistent with long-term investment approach and focuses on companies in Real Estate Services, Professional Business Support Services, and Electrical Components sectors.
Lead Portfolio Manager & CIO
High Conviction Bullish
Market Conviction
The manager demonstrates very high conviction through multiple concrete signals: personally adding capital at quarter-end, making three new concentrated purchases in businesses they describe as some of the best in the world, providing detailed multi-paragraph thesis explanations for each holding, and explicitly encouraging clients to add capital. The letter names specific positions with clear sizing language and discusses why they would continue to own through volatility. The manager uses declarative language about value stability and compounding without hedging. The only factor preventing a 0.90+ score is the diversified All Cap structure with multiple holdings rather than extreme concentration.
Growth Outlook
Manager is constructive on long-term opportunities despite acknowledging current market hysteria around AI. Views current environment as once-in-a-decade opportunity similar to financial crisis, suggesting optimism about future returns from current positioning.
Risk Appetite
Manager is actively deploying capital into discounted positions, buying companies at significant discounts and improving price-to-value ratios across portfolios. Demonstrates high risk appetite by concentrating in AI-affected names that others are selling.
Capital Deployment
The manager made three new purchases (Veeva, ServiceNow, Equifax) and sold four positions during the quarter. While no specific cash level changes are disclosed, the manager personally added capital and explicitly encourages clients to do the same, describing it as an excellent time to add capital. The activity reflects selective deployment into specific discounted names rather than broad-based buying. The net posture is moderately positive deployment, though not aggressive given the balanced buy/sell activity and continued emphasis on discipline.
Forward Guidance
Manager expresses confidence in continuing to add capital to discounted positions and expects to be rewarded for current positioning. Explicitly encourages clients to add capital at current price-to-value ratios based on historical success.
Language Signal
The letter contains substantial opportunity language: fantastic opportunity, thrilled, excellent time to add capital, wonderful businesses, substantial margin of safety, exceptional businesses, compelling. However, this is balanced with acknowledgment that companies remain deeply out of favor, the market is overvalued, and they have paid a short-term price for their positioning. The net balance tilts moderately positive but is not overwhelmingly bullish in tone.
Perceived Risk
Manager acknowledges AI disruption risks and market volatility but frames these as opportunities rather than threats. Discusses specific risks to individual holdings but expresses confidence in ability to differentiate between companies that will benefit versus be disrupted by AI.
Opportunity Density
The manager describes a fantastic opportunity for serious long-term investors and states it is an excellent time to add capital. They made three new purchases of businesses they characterize as some of the best in the world at significant discounts. The letter emphasizes that portfolio companies are significantly more undervalued than what is working in the market, with businesses trading at roughly 50 cents on the dollar. While selectivity is emphasized, the manager clearly sees abundant opportunities in their specific area of focus, justifying a high opportunity density score.
Time Horizon
The manager explicitly states they place no weight on short-term results and emphasizes long-term capital appreciation. They reference a five-year investment lens multiple times and discuss multi-year value compounding. The letter encourages clients to think as long-term investors and notes they will make decisions to improve prospective long-term returns without regard to short-term performance. While specific catalyst timelines are mentioned for some holdings (e.g., Elevance earnings returning to double-digit growth next year), the overall emphasis is on patient, multi-year holding periods. The time horizon is clearly multi-year but not permanent capital, justifying a 0.75 score.
Top Conviction Themes
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