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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Vulcan Value Partners Focus Composite returned 10.4% net in Q2 2026, bringing YTD performance to -10.7% net. The manager emphasizes that despite attractive absolute returns, price to value ratios remained virtually unchanged as portfolio companies reported solid results and generated strong free cash flow while most repurchased discounted shares. The manager reallocated capital from companies whose prices increased more than intrinsic values into those trading at larger discounts. The portfolio sold UnitedHealth Group after a 35% gain to redeploy into more discounted names. Material contributors included Amazon, which reported accelerating AWS growth to 28% and strong retail momentum, and Alphabet, where Google Cloud accelerated to 63% growth with expanding margins. Ryan Specialty and TransDigm experienced stock price volatility while values grew, prompting additions. Everest Group is generating double-digit value growth per share by repurchasing stock below tangible book value in a soft insurance market. The manager believes the portfolio owns exceptional businesses at roughly 50 cents on the dollar and personally added capital, encouraging long-term investors to do the same.
Vulcan owns a concentrated portfolio of 7-14 exceptional businesses with sustainable competitive advantages trading at approximately 50 cents on the dollar, providing a substantial margin of safety while intrinsic values compound at attractive double-digit rates.
The manager believes they own a collection of some of the finest businesses in the world at roughly $.50 on the dollar. The combination of steady value growth and a substantial margin of safety reduces risk and historically has led to outsized returns over longer periods. The manager personally added capital at the end of the first quarter and encourages long-term investors to follow their lead.
As of Jul 23, 2026
C.T. Fitzpatrick founded Vulcan Value Partners, LLC in 2007 and serves as Chairman and Chief Investment Officer. The firm has grown to approximately 45 employees, including 16 investment advisory professionals, with employee ownership expanding from 8 owners in 2021 to 21 in 2025, creating a majority employee-owned structure where staff invests alongside client partners. Jeff St. Denis assumed the CEO role in 2023 while Fitzpatrick retained his Chairman, CIO, and portfolio manager positions. The firm has been consistently recognized for its workplace culture, being named to Pensions & Investments Best Places to Work in Money Management for asset managers with 50-99 employees for the 2017-2021 award periods. Vulcan maintains comprehensive regulatory compliance across multiple jurisdictions beyond SEC registration, including Australia, Canada, Ireland, and Luxembourg.
Vulcan Value Partners employs a fundamental value investing philosophy centered on purchasing publicly traded companies that are competitively entrenched at significant discounts to their estimation of intrinsic worth. The firm limits their search for qualifying investments to enduring businesses with identifiable, sustainable competitive advantages which have the ability to consistently produce free cash flow. Their approach emphasizes two components to the concept of margin of safety: value stability and the discount at which they can purchase the company. The Focus strategy represents a concentrated approach, typically holding between 7 to 14 companies with core positions ranging from 6% to 10%, weighted by valuation discounts. The firm believes that by concentrating on not losing money, making money should take care of itself, with a primary objective to minimize the risk of permanently losing capital over their long-term time horizon of five years.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
This is a highly concentrated 7-14 position portfolio with named, sized holdings discussed in detail. The manager explicitly states they own some of the finest businesses in the world at 50 cents on the dollar and personally added capital. Specific position sizing actions are described: selling UnitedHealth after a 35% gain, adding to Ryan and TransDigm on volatility, adding to SAP. The letter uses declarative language about competitive positions and value growth without hedging. The manager has clear conviction in each holding with specific catalysts and thesis points. However, the portfolio is not at the extreme concentration level of 5 or fewer positions, and some uncertainty is acknowledged around AI disruption risks, preventing a score above 0.85.
Growth Outlook
Market outlook remains moderate conviction: Vulcan systematically reduced expensive tech holdings in favor of heavily discounted Small Cap, healthcare, and insurance names, positioning portfolios with deep margins of safety ...
Risk Appetite
Risk appetite posture is moderate conviction: Vulcan systematically reduced expensive tech holdings in favor of heavily discounted Small Cap, healthcare, and insurance names, positioning portfolios with deep margins of safety ...
Capital Deployment
The manager personally added capital at the end of Q1 and is selectively adding to positions like Ryan, TransDigm, and SAP when price to value ratios become more attractive. However, this is primarily capital rotation rather than net new deployment, as the manager sold UnitedHealth to fund other purchases. No cash level changes are disclosed. The activity is selective reallocation within a fully invested portfolio rather than aggressive deployment of new capital, warranting a modestly positive score reflecting selective adding but not net deployment.
Forward Guidance
Forward guidance signal: Vulcan systematically reduced expensive tech holdings in favor of heavily discounted Small Cap, healthcare, and insurance names, positioning portfolios with deep margins of safety ...
Language Signal
The letter uses consistently positive language about portfolio holdings: exceptional businesses, fantastic opportunity, deeply discounted, substantial margin of safety, attractive double-digit rates, thrilled, pleased, wonderful business. The manager describes companies as dominant, world-class, and best in the world. Risk language is minimal and mostly relates to market overvaluation creating opportunity rather than portfolio concerns. The only negative framing is that companies remain out of favor, which is presented as a buying opportunity. The balance is clearly tilted toward bullish language about specific holdings.
Perceived Risk
Perceived risk level is evaluated as above average conviction. Vulcan systematically reduced expensive tech holdings in favor of heavily discounted Small Cap, healthcare, and insurance names, positioning portfolios with deep margins of safety ...
Opportunity Density
The manager describes a fantastic opportunity for serious long-term investors and states they own exceptional businesses at roughly 50 cents on the dollar. Multiple specific opportunities are identified: adding to Ryan, TransDigm, and SAP on volatility. The letter emphasizes that companies are significantly more undervalued than what is working in the market. However, the manager also notes the market is overvalued and not cheap, suggesting selectivity is required. The opportunity set is characterized as selective but attractive in specific areas rather than broadly abundant, warranting a moderately positive score.
Time Horizon
The manager explicitly states they place no weight on short-term results and focus on long-term capital appreciation. The letter encourages investors to consider at least a five-year time horizon. The manager is willing to pay a short-term price for positioning and emphasizes that the combination of steady value growth and margin of safety historically has led to outsized returns over longer periods. However, the letter also discusses quarterly results, near-term catalysts like earnings growth returning next year for Elevance, and guidance changes, indicating a medium-term 2-5 year focus rather than a decade-plus permanent capital horizon. The fund structure is not permanent capital, warranting a score in the multi-year range.
Top Conviction Themes
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