| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.2% | 1.3% | 10.7% |
| 2025 | 2024 |
|---|---|
| 10.7% | 13.6% |
Vulcan Value Partners delivered positive absolute returns across all strategies in 2025 while meaningfully improving price-to-value ratios, positioning portfolios for enhanced long-term compounding despite short-term relative underperformance. The manager draws parallels to the late 1990s, noting AI stocks dominated market returns similar to Internet stocks during the dot-com era, with concentration in mega-cap stocks and speculative behavior in lower-quality names. The firm maintains disciplined focus on their MVP list of high-quality businesses with sustainable competitive advantages, finding opportunities in overlooked areas including smaller-cap stocks, healthcare, and insurance sectors. Key portfolio actions included capitalizing on market volatility during the tariff tantrum to improve margins of safety, with examples like Medpace demonstrating value creation through intelligent capital allocation. The Small Cap portfolio remains most attractively valued with price-to-value ratios in the mid-50s. Despite challenging relative performance environment, the manager expresses confidence in portfolio positioning, remaining fully invested with improved risk-adjusted return prospects across all strategies.
Vulcan Value Partners follows a disciplined value investing approach, purchasing only high-quality businesses from their MVP list with sustainable competitive advantages at significant discounts to intrinsic value, believing this strategy will deliver superior long-term returns despite short-term relative underperformance in an overvalued market environment.
The manager expresses optimism about portfolio positioning for long-term compounding, with improved price-to-value ratios across all strategies. They believe portfolios are full of companies similar to Medpace that compound values at attractive rates with prices not reflecting fair values. The tone is confident about long-term prospects despite short-term relative performance challenges.
| 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, RYSG, SSCC, SWKS, TRU, UNH | AI, Buybacks, insurance, Margin Of Safety, Quality, small caps, technology, value |
RYAN KMX TRU SWKS FISV |
AI is in early stages of disrupting numerous businesses similar to the Internet in the 1990s. The manager notes AI stocks accounted for approximately 61% of the S&P 500's return in 2025. Unlike the dot-com era, some AI leaders are real businesses financing substantial AI investments with self-generated cash flow, though valuations for some are attractive while others may be overvalued. The manager emphasizes following value investing discipline by purchasing only companies from their MVP list with stable values at discounted prices. They focus on businesses with sustainable competitive advantages trading below intrinsic value estimates, with portfolios showing improved price-to-value ratios across all strategies despite positive absolute returns. Small Cap returns have lagged Large Cap for an extended period, with Small Cap Value performing even worse. The manager notes conversations with clients questioning continued Small Cap allocation, spotty sell-side coverage, and an ignored segment creating opportunities. Their Small Cap portfolio remains most discounted with weighted average price-to-value ratio in mid-50s. The manager owns more insurance-related businesses, highlighting opportunities in the sector. They discuss Ryan Specialty Holdings as a commercial excess and surplus insurance broker, and Everest Group as a leading reinsurance company trading at discount to tangible book value despite producing underwriting profits. Share repurchases are highlighted as value-creating when companies buy back stock below intrinsic value. Medpace used strong balance sheet and free cash flow to repurchase over 8% of shares at approximately 50% of estimated intrinsic value, giving shareholders 100% return on each dollar spent on buybacks. |
| Oct 14 2025 | 2025 Q3 | - | Capital Allocation, free cash flow, Long-Term Investing, Quality, value |
FISV US MEDP US GOOGL US |
Vulcan emphasizes a long-term, value-driven approach amid high market valuations. The portfolio focuses on quality companies with strong free cash flow and pricing power such as Medpace and Alphabet, while maintaining strict capital allocation discipline. The firm continues to compound intrinsic value through buybacks and reinvestment in undervalued assets. |
| Jun 30 2025 | 2025 Q2 | - | Discipline, Intrinsic Value, Margin Of Safety, value, volatility | - | The letter emphasizes exploiting volatility to increase margin of safety in stable, high-quality businesses. Management highlights disciplined reallocation during tariff-driven dislocations to improve prospective returns. Long-term intrinsic value, not short-term performance, anchors decision-making. |
| Apr 9 2025 | 2025 Q1 | ISS DC, JLL, SW FP, SWKS, TPG | - | - | |
| Dec 31 2024 | 2024 Q4 | 938 GR, EG, ELV, KKR, LYV, MEDP, PGHN SW, QRVO | - | - | |
| Oct 9 2024 | 2024 Q3 | CIGI, CWK, DNB, IBST LN | - | - | |
| Jul 12 2024 | 2024 Q2 | 938 GR, ISS DC, NICE IT | - | - | |
| Apr 25 2024 | 2024 Q1 | KKR, LYV, NICE IT, TDG | - | - | |
| Jan 17 2024 | 2023 Q4 | 938 GR, CG, CWK, DNB, KKR, TDG | - | - | |
| Oct 10 2023 | 2023 Q3 | 0L4F LN, AMAT | - | - | |
| Jul 31 2023 | 2023 Q2 | AMZN, CWK, ELV, G, MSFT, TDG | - | - | |
| Mar 31 2023 | 2023 Q1 | ARES, MSFT | - | - | |
| Sep 2 2023 | 2022 Q4 | ABM, AMAT, AMZN, GE, META, NICE, SPLK, TDG | - | - | |
| Sep 11 2022 | 2022 Q3 | APP, CIGI, CWK, LFUS, PBH CN, PK | - | - |
| 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 | |
InsuranceBerkshire's insurance operations generated pre-tax underwriting gains and grew float to $176 billion. The combined ratio of 87.1% across property and casualty businesses was exceptional. However, increased competition and rising claim cost trends may pressure future earnings. |
P&C Insurance Reinsurance Float Underwriting GEICO | |
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 |
Capital Discipline |
|
Quality Growth |
||
Value Investing |
||
| 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 | FISV US | Fiserv Inc | Other | Transaction & Payment Processing Services | Bull | NASDAQ | buybacks, cash flow, Fintech, Payments, recurring revenue, Software, valuation | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | MEDP US | Medpace Holdings Inc | Health Care | Contract Research Organization | Bull | NASDAQ | biotechnology, buybacks, Cro, healthcare, Outsourcing, profitability, Revenue Growth | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | GOOGL US | Alphabet Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, antitrust, cash flow, cloud, Search, technology | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | RYAN | Ryan Specialty Holdings, Inc. | Financials | Insurance Brokers | Bull | New York Stock Exchange | cyclical pricing, Delegated Authority, Excess Surplus Insurance, Free Cash Flow, market share | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | KMX | CarMax, Inc. | Consumer Discretionary | Automotive Retail | Bull | New York Stock Exchange | Consumer credit, Cyclical Recovery, Operational Leverage, Share Buybacks, Used cars | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | TRU | TransUnion | Industrials | Research & Consulting Services | Bull | New York Stock Exchange | Credit data, Identity Analytics, oligopoly, recurring revenue, Share Buybacks | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | SWKS | Skyworks Solutions, Inc. | Information Technology | Semiconductors | Bear | NASDAQ | Capital Cycle, Rf Semiconductors, Valuation Discipline, Wireless Content | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | FISV | Fiserv, Inc. | Information Technology | Transaction & Payment Processing Services | Bull | New York Stock Exchange | Capital reinvestment, Free Cash Flow, Management Transition, Payments, recurring revenue | 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. |
| RYSG | 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. Roughly 55% of Ryan Specialty's revenue is generated from brokerage and 45% is generated from its delegated authority businesses which include underwriting management and binding authority. The excess and surplus brokerage market is dominated by three large players: Amwins Group, Ryan Specialty, and CRC Group and represents 26% of commercial property and casualty premiums today. Over the last 25 years, the excess and surplus market has grown at an 11% CAGR while the admitted market has grown at a 4% CAGR. We believe that the excess and surplus market will continue to outgrow the admitted market. Ryan Specialty's delegated authority business writes policies on behalf of insurance carriers which means they do not retain any balance sheet risk. The company has grown organically at a double-digit rate for each of the past 15 years. Ryan Specialty's margins are stable and free cash flow is robust. The portion of Ryan Specialty's business exposed to commercial property is entering a soft pricing cycle. We believe this is a short-term phenomenon, not a long-term negative structural issue. This pricing headwind has caused underlying industry growth to slow. Ryan Specialty's stock price has been negatively impacted by this overall negative industry sentiment. This price volatility has pushed the stock well below what we believe to be their long-term intrinsic value therefore giving us this opportunity to add this wonderful business to the portfolio. |
| 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 | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
