Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 30th June 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.7% | 10.5% | -10.6% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.7% | 10.5% | -10.6% |
Vulcan Value Partners Focus Plus Composite returned 10.5% net in Q2 2026 but remains down 10.6% year-to-date. The manager maintains that the portfolio owns exceptional businesses at roughly 50 cents on the dollar despite being deeply out of favor. During the quarter, UnitedHealth Group was sold after recovering more than 35% to reallocate capital into more discounted names. Key contributors included Amazon, which reported accelerating AWS growth of 28% and Google Cloud growth of 63%, with AI driving expansion across both platforms. Alphabet's Google Cloud is now 40% of the company's value, up from negative EBIT margins in 2022. Everest Group continues disciplined underwriting in a soft insurance market, using 100% of free cash flow to repurchase stock below 50% of fair value. TransDigm and SAP were added to during volatility. The manager emphasizes that companies reported solid fundamentals with strong free cash flow generation and share repurchases, while values compounded at double-digit rates. Portfolio price-to-value ratios remained stable as capital was reallocated from appreciated positions into deeper discounts. The manager personally added capital and encourages long-term investors to do the same.
Vulcan owns a concentrated portfolio of exceptional businesses with sustainable competitive advantages trading at approximately 50 cents on the dollar, providing substantial margins of safety that reduce risk and position the portfolio for outsized long-term returns as values compound steadily.
The manager believes the portfolios have extremely attractive margins of safety and own some of the best businesses in the world at roughly $.50 on the dollar. Companies remain deeply out of favor but values continue to rise steadily. The combination of steady value growth and 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 suit. Price to value ratios remained relatively constant in Q2 as companies reported solid results and generated strong free cash flow, while the manager reallocated capital from appreciated positions into more discounted opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 21 2026 | 2026 Q2 | AMZN, EG, GOOGL, RYAN, SAP, TDG, UNH | AI, Buybacks, Cloud, concentrated, healthcare, insurance, technology, Value Investing | - | Vulcan's Focus Plus portfolio owns world-class businesses at 50% discounts despite Q2 outperformance. Amazon and Alphabet drove returns with accelerating cloud growth and AI adoption. UnitedHealth was sold after 35% recovery to fund deeper discounts. Everest Group compounds book value double-digits while buying stock below tangible book in a soft insurance market. Companies generate strong free cash flow and repurchase discounted shares. Manager added personal capital. |
| Jul 21 2026 | 2026 Q2 | AMZN, EG, GOOGL, RYAN, SAP, TDG, UNH | aerospace, AI, Cloud, Concentration, E-Commerce, Health Insurance, insurance, value | - | Vulcan's Focus portfolio returned 10.4% in Q2 but remains down 10.7% YTD as deeply discounted quality businesses compound values while out of favor. The manager sold UnitedHealth after strong recovery to redeploy into more discounted names. Amazon and Alphabet delivered accelerating cloud growth while Ryan and TransDigm offered buying opportunities on volatility. The manager personally added capital and views current discounts as compelling for long-term investors. |
| Apr 21 2026 | 2026 Q1 | AMZN, ARES, CRM, MSFT, RYAN, SAP, TRU, UNH | AI, Concentration, disruption, Enterprise, Quality, software, Value Investing |
SAP ARES RYAN |
AI disruption hysteria created indiscriminate selling, allowing Vulcan to buy quality businesses at $0.50 on the dollar. The firm believes enterprise software companies like SAP will benefit from AI rather than be disrupted. Portfolio price-to-value ratios improved to upper 40s, creating exceptional long-term return potential despite short-term underperformance. |
| Apr 21 2026 | 2026 Q1 | AMZN, ARES, CRM, MSFT, RYAN, SAP, TRU, UNH | AI, Discounts, disruption, Enterprise, Quality, software, value |
SAP ARES RYAN |
AI hysteria has created once-in-a-decade opportunity to buy quality businesses at $0.50 on the dollar. Manager actively repositioning portfolios, selling fully valued names to buy discounted enterprise software, asset managers, and specialty insurers. Believes incumbent platforms will benefit from AI rather than be disrupted. Short-term pain for long-term gain strategy. |
| 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 | - | Vulcan improved price-to-value ratios across all strategies while delivering positive returns in 2025. Drawing parallels to late 1990s, manager sees current AI-driven market as overvalued but maintains discipline focusing on quality companies at deep discounts. Small Cap portfolio trades at mid-50s price-to-value ratio, positioning for long-term outperformance as unloved segment recovers. |
| Oct 14 2025 | 2025 Q3 | CBRE, CRM, FISV, GOOGL, JLL, KMX, MEDP, SEE, UNH | Buybacks, consumer discretionary, financials, healthcare, technology, value |
GOOGL US UNH US Salesforce Inc |
Vulcan Value Partners delivered positive absolute returns across all strategies while improving price-to-value ratios through disciplined capital reallocation. Despite market volatility from tariff concerns, the firm successfully moved capital from higher-priced positions to more discounted opportunities. Strong performance from Medpace and Alphabet offset weakness in CarMax, while maintaining fully invested portfolios with substantial margins of safety. |
| Jun 30 2025 | 2025 Q2 | AMZN, ARES, CG, DNB, FORT.L, GOOGL, IBST.L, IQV, ISS.CO, LFUS, MC.PA, MEDP, MSFT, PGHN.SW, UNH | AI, Alternative Assets, healthcare, tariffs, technology, value, volatility |
UNH UNH IQV MSFT ARES ISS.CO LFUS AMZN GOOGL FORT.L |
Vulcan Value Partners capitalized on tariff-driven market volatility to execute disciplined value investing, reallocating capital from higher-priced to more discounted companies. Key moves included adding UnitedHealth Group after 50% decline and IQVIA Holdings at attractive valuations. Microsoft and Ares Management drove performance through AI and alternative asset tailwinds. The quarter demonstrated how volatility creates opportunities for patient value investors. |
| Apr 9 2025 | 2025 Q1 | ABT, AM, AMZN, CRM, CWK, ENS, FI, GOOGL, ISS.CO, ITRN, JLL, LYV, MAR, MEDP, MSFT, PGHN.SW, PRG, SW.PA, SWK, SWKS, TPG | Cloud, concentrated, large cap, technology, value, volatility |
MEDP SWK TPG JLL ISS ITRN PRG SWKS SODEXO.PA |
Vulcan Value Partners' Focus Plus strategy declined 6.0% in Q1 2025 as market volatility returned amid tariff uncertainty. Cloud computing holdings including Microsoft, Amazon, and Salesforce were key detractors despite strong fundamentals. The firm welcomed volatility as an opportunity to improve price-to-value ratios and add to discounted positions, maintaining confidence in their stable-value investment approach. |
| Dec 31 2024 | 2024 Q4 | AMZN, CCK, CG, CRM, ELV, FBHS, GOOGL, HEIA.AS, KKR, LYV, MIDD, PBH.TO, PGHN.SW, QRVO, RE, RI.PA, RTO.L, SDIP.ST, SW.PA, UNH | Alternative Asset Managers, Cloud, Concentration, Discipline, insurance, large cap, value | - | Vulcan's Focus Plus strategy delivered 27.5% net returns in 2024 through disciplined value investing, reallocating from appreciated to discounted companies while maintaining attractive price-to-value ratios. The firm increased diversification and international exposure, added quality alternative asset managers, and benefited from strong performance in cloud leaders Amazon and Salesforce. |
| Oct 9 2024 | 2024 Q3 | CBRE, CIGI, CWK, DNB, EG, IBST.L, JLL, KKR, LYV, MC.PA, PGHN.SW, PLNT, PRG, SBUX, UNH | Alternative Assets, Commercial real estate, Concentration, interest rates, Luxury, Reinsurance, value | - | Vulcan Value Partners delivered strong Q3 returns while maintaining disciplined value investing approach. Added quality names like Everest Group, Partners Group, and LVMH at attractive valuations. Commercial real estate holdings positioned to benefit from falling interest rates. Sold positions trading near fair value to redeploy into more discounted opportunities. Focus remains on long-term value compounding through concentrated, high-conviction positions. |
| Jul 12 2024 | 2024 Q2 | BLL, CSGP, GOOGL, ISS.CO, KMX, NICE, PK, PLNT, QRVO, SDIP.ST | AI, Cloud, concentrated, Discipline, Enterprise Software, large cap, technology, value |
NICE PLNT QRVO KMX SDIP.ST GOOGL CSGP ISS.CO |
Vulcan Value Partners posted mixed Q2 results but maintained disciplined value investing approach, adding to discounted positions including enterprise software leaders NICE and CoStar Group. The firm views AI as accelerating cloud adoption rather than disrupting their technology holdings. Strong year-to-date performance of 12% reflects their concentrated strategy of owning high-quality businesses at attractive valuations. |
| Apr 25 2024 | 2024 Q1 | AMAT, AMZN, CCK, CNM, CRM, GE, KKR, KMX, LYV, MEDP, MSFT, NICE, SBUX, TDG, TXN | aerospace, Cloud, Entertainment, large cap, software, technology, value |
LYV KMX SBUX CCK |
Vulcan delivered strong Q1 returns through disciplined value investing, adding Live Nation, CarMax, and Starbucks while exiting General Electric after appreciation. Technology holdings including Microsoft, Amazon, and Salesforce drove performance on cloud and AI tailwinds. The concentrated portfolio benefits from secular growth in entertainment, aerospace recovery, and digital transformation while maintaining focus on quality businesses with sustainable competitive advantages. |
| Jan 17 2024 | 2023 Q4 | AMZN, CBRE, CG, CIGI, CRM, CWK, DEO, FORT.L, GOOGL, IBST.L, ISS.CO, KKR, LFUS, MEDP, MSFT, PK, SDIP.ST, TDG, V, VRTS | AI, Alternative Assets, Cloud, Concentration, large cap, real estate, technology, Value Investing | DEO | Vulcan's Focus Plus strategy delivered 56.5% returns in 2023, driven by technology leaders benefiting from AI investments and commercial real estate recovery on improving rate outlook. The firm maintains its disciplined value approach, staying fully invested in concentrated positions while reallocating capital to maintain margins of safety. Management sees encouraging signs for 2024 as macroeconomic headwinds may subside. |
| Oct 10 2023 | 2023 Q3 | AMAT, DEO, FWRD, ISS.CO, ITRN, LRCX, MAR, MLKN, SEE, SMRT, TXN, UNH | healthcare, Hospitality, large cap, Quality, semiconductors, Spirits, value |
DEO AMAR TXN AAPL|MSFT|NFLX|NVDA|UNH DEEPSEEK |
Vulcan Value Partners delivered negative Q3 returns but strong YTD performance, adding four quality large-cap positions including Diageo, Marriott, Texas Instruments, and UnitedHealth Group at attractive valuations. The firm maintains disciplined value investing approach, recently reopening Small Cap and All Cap strategies due to compelling price-to-value opportunities across their concentrated portfolios. |
| Jul 31 2023 | 2023 Q2 | CAH, CBRE, CCL, CG, Gold, LESL, MOS, MSGE, NCLH, NTRS, ORCL, PARA, RCL, SNA, SPHR, ZIMV | contrarian, Cruises, mid cap, real estate, small cap, value | - | Ariel Fund's contrarian approach paid off in Q2 2023 with cruise lines and Oracle driving strong performance after being scorned during Covid. The fund's emphasis on low PE value stocks positions them well as the Fed tightening cycle nears an end, with opportunities emerging in beaten-down real estate sectors. |
| Mar 31 2023 | 2023 Q1 | AMZN, CRM, GE, GOOGL, KKR, MSFT, SWKS, TDG | aerospace, Alternative Assets, Concentration, long-term, Margin Safety, Quality, technology, value |
IHG UPS ACWI AYI CNM DEEPSEEK ARES |
Vulcan's concentrated Focus Plus strategy delivered exceptional 20.4% Q1 returns through eight material contributors and zero detractors. Strong performance from technology holdings like Microsoft and Salesforce, plus successful GE HealthCare spin-off execution. Despite macro headwinds and recession risks, the team maintains conviction in competitively entrenched businesses trading below intrinsic value with sustainable advantages. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
CloudAmazon AWS revenue growth accelerated to 28%, its fastest in 15 quarters. Google Cloud revenue growth accelerated to 63%, the fastest rate ever reported, with margins expanding to 33% from 18% a year prior. Google Cloud is now roughly 40% of Alphabet's value, a stark contrast to negative EBIT margins in 2022. |
AWS Google Cloud Infrastructure Margins Growth |
AIAmazon Bedrock grew 170% quarter-over-quarter with 125,000 customers including 80% of the Fortune 100. AI continues to be an expansionary moment for Google Search with queries at all-time highs. Google Cloud backlog grew 5X year-over-year driven by enterprise AI offerings and TPU sales. The manager continues to monitor AI disruption risks across portfolio companies. |
Bedrock Search TPU Enterprise Disruption | |
Managed CareUnitedHealth Group and Elevance are the two largest private health insurers serving 94 million members combined. Both faced margin pressure in government-sponsored plans post-Covid but are returning to steady earnings growth. UnitedHealth executed better than expected after replacing its CEO, and the market is beginning to recognize stable fundamentals. |
Health Insurance Medicaid Medicare Advantage Margins Recovery | |
ReinsuranceEverest Group is a disciplined underwriter in a soft insurance market. The company is shrinking top line and building balance sheet strength to deploy when the market turns hard again. Using 100% of FCF to buy stock below 50% of fair value and below tangible book value, the manager is enjoying double-digit value growth per share despite declining revenue. |
Underwriting Soft Market Book Value Buybacks Discipline | |
E-commerceAmazon's core retail business showed improving profitability with paid unit growth of 15% in the quarter, the fastest in 19 quarters. Advertising revenue growth remains in the low 20% range. Amazon remains a dominant world-class company with powerful secular tailwinds including e-commerce penetration and digital advertising growth. |
Retail Unit Growth Advertising Profitability Secular | |
SemiconductorsAmazon's chips business consisting of Trainium and Graviton is now over a $20BN run-rate business growing triple-digits year-over-year. Amazon's utilization of proprietary chips helps moderate capex spend relative to competitors. Most of Amazon Bedrock's inference demand is powered by Amazon's internal Trainium chips. |
Trainium Graviton Inference Capex Proprietary | |
Enterprise SoftwareSAP reported very strong Q1 results with total revenue up 12% and EBIT up 16%. Cloud revenue grew 27% and cloud backlog grew 25%. SAP is the global leader in ERP software with decades of embedded data and business processes, making it extremely rare for companies to switch vendors. The manager added to the position during stock price volatility. |
ERP Cloud Backlog Switching Costs Mission Critical | |
AerospaceTransDigm reported double-digit organic revenue and profit growth with approximately 90% of net sales from proprietary parts. The company produces robust FCF and is repurchasing discounted stock. Despite headwinds from the Iranian War, the company raised guidance as strength in other areas more than offset weakness in the Middle East. |
OEM Aftermarket Proprietary FCF Guidance | |
| 2026 Q2 |
Health InsuranceUnitedHealth and Elevance are the two largest private health insurers serving 94 million members. UnitedHealth recovered strongly after management transition, executing better than expected. Elevance is adjusting to post-Covid margin pressure in government plans and earnings should return to double-digit growth next year. Both companies' fundamentals remain strong and discounted shares are beginning to recover. |
Managed Care Medicare Medicaid Healthcare |
CloudAWS revenue growth accelerated to 28%, the fastest in 15 quarters. Amazon Bedrock grew 170% quarter-over-quarter with 125,000 customers including 80% of Fortune 100. Google Cloud revenue growth accelerated to 63%, the fastest ever reported, with margins expanding to 33% from 18% a year prior. Google Cloud backlog grew 5X year-over-year driven by enterprise AI offerings. |
AWS AI Infrastructure Enterprise | |
AIAI continues to be an expansionary moment for Google Search with queries at all-time highs. Amazon's proprietary Trainium chips business is now over $20BN run-rate growing triple-digits. Google Cloud growth is driven by enterprise AI offerings and TPU sales. The manager continues to monitor AI disruption risks across portfolio companies and MVP businesses. |
Search Semiconductors Enterprise Software Infrastructure | |
E-commerceAmazon's core retail business continues to show improving profitability despite rising satellite launch costs. Paid unit growth was 15% in the quarter, the fastest unit growth in 19 quarters. Amazon remains a dominant world-class company with powerful secular tailwinds including e-commerce penetration. |
Retail Logistics Growth | |
AdvertisingAmazon advertising revenue growth remains in the low 20% range. Google Search revenue accelerated to 19%, the fastest growth in 16 quarters, with AI driving search queries to all-time highs. |
Digital Search Growth | |
InsuranceEverest Group is a global reinsurance and specialty insurance business known for disciplined underwriting. In the current soft market with declining revenue, the company is building balance sheet strength and using 100% of FCF to buy stock at less than 50% of fair value and below tangible book value, producing double-digit value growth per share. Ryan Specialty reported 11.8% organic revenue growth but cut 2026 outlook due to property rate declines, though submission growth remains robust at 15-23% across key states. |
Reinsurance Underwriting Specialty Brokers | |
AerospaceTransDigm reported double-digit organic revenue and profit growth. The company produces robust free cash flow and is using it to repurchase discounted stock. Despite headwinds from the Iranian War, the company raised guidance as strength in other areas more than offset weakness in the Middle East. |
Defense Components Aftermarket | |
Enterprise SoftwareSAP reported very strong Q1 results with total revenue up 12% and EBIT up 16%. Cloud revenue grew 27% and cloud backlog grew 25%. The company repurchased €2.6B of stock in the quarter and maintained full-year guidance. SAP's ERP solutions have decades of embedded data and it is extremely rare for companies to switch vendors due to cost, time, and disruption risk. |
ERP SaaS Cloud Mission Critical | |
| 2026 Q1 |
AIManager views AI disruption fears as creating hysteria in markets, leading to significant discounts in quality businesses. Believes some companies will be disrupted while others will benefit, but market is not differentiating. Actively researching AI risks and positioning in companies with low disruption risk or those that will benefit from AI adoption. |
Artificial Intelligence Disruption Enterprise Software Automation Technology |
Enterprise SoftwareFocused on mission-critical enterprise software companies like SAP and ServiceNow that have deep customer entrenchment and network effects. Believes these platforms will benefit from AI integration rather than be disrupted, as they serve as the foundation for AI implementations. |
ERP SaaS CRM Workflow Automation Business Software | |
Alternative Asset ManagersOwns Ares Management and TPG, viewing AI-related fears about their software exposure as overblown. Believes these managers have strong track records, selective investment approaches, and structural advantages that will enable them to navigate AI disruption successfully. |
Private Credit Asset Management Software Investments Institutional Capital | |
ValueExecuting disciplined value investing approach by selling fully valued companies to buy deeply discounted quality businesses. Portfolio price-to-value ratios approaching $0.50 on the dollar, similar to financial crisis levels, creating exceptional long-term return potential. |
Price to Value Margin of Safety Intrinsic Value Discount Quality | |
| 2026 Q1 |
AIManager views AI disruption fears as creating hysteria in markets, leading to significant discounts in quality businesses. Believes AI will benefit incumbent platforms like SAP, Microsoft, and Salesforce rather than disrupt them. Sees three categories of AI disruption risk: software, alternative asset managers, and indirectly impacted businesses. |
Disruption Software Enterprise Automation Agents |
SoftwareFocused on enterprise software companies with competitive moats, particularly ERP systems like SAP. Believes these systems are too embedded and complex to be easily disrupted by AI. Views current AI fears as creating buying opportunities in high-quality software businesses. |
ERP Enterprise SaaS Platforms Incumbents | |
ValueEmphasizes buying quality businesses at significant discounts, with portfolio price-to-value ratios approaching $0.50 on the dollar. Compares current opportunity to financial crisis era discounts, actively selling fully valued companies to buy more discounted ones. |
Discounts Margin of Safety Intrinsic Value Opportunistic | |
Alternative Asset ManagersOwns Ares Management and TPG, viewing AI-related fears about their software exposure as overblown. Believes these managers have strong track records, selective investment approaches, and structural advantages that will allow them to navigate AI disruption successfully. |
Private Credit Asset Management Institutional Track Record | |
| 2025 Q4 |
GoldGold prices rose 65% in 2025, driving strong performance across gold miners and non-producing companies. The fund significantly trimmed gold positions from 15% to 9% of the portfolio due to strong performance, while maintaining exposure to companies with substantial optionality to rising gold prices. |
Gold Miners Precious Metals Barrick Northern Dynasty |
Platinum Group MetalsPlatinum rose 127% and palladium 78% in 2025, with PGM producers being among the largest contributors for the second consecutive quarter. The fund views these companies as having substantial upside potential relative to risk-adjusted intrinsic value estimates, as they were materially mispriced at the end of 2024. |
Platinum Palladium Valterra Impala | |
ValueAfter over a decade of underperformance, the market may be beginning to recognize value, with value stocks having a strong fourth quarter. The fund emphasizes buying good companies for less than they are worth, which has historically portended strong returns over the long term, especially following periods of underperformance. |
Value Investing Undervalued Fundamentals | |
Industrial MetalsThe fund rolled gains from gold into industrial metals producers, finding significantly more upside to risk-adjusted intrinsic value estimates than in gold companies. Companies like Vale, Glencore, and SQM performed well during the quarter, with the fund actively managing positions based on valuations. |
Iron Ore Lithium Copper Vale | |
| 2025 Q3 |
ValueManager emphasizes owning outstanding businesses with substantial margins of safety at attractive price-to-value ratios. Despite positive returns, they improved price-to-value ratios across all portfolios by reallocating capital from higher-priced stocks to more discounted companies. Focus and Focus Plus portfolios have price-to-value ratios in the upper 60s, while Small Cap remains most discounted in the mid 50s. |
Margin of Safety Price to Value Discounted Undervalued Intrinsic Value |
BuybacksMultiple portfolio companies are repurchasing shares that both the manager and companies believe are undervalued, which is additive to value per share growth. Medpace repurchased nearly 6% of outstanding shares, Fiserv is using free cash flow to repurchase discounted shares, and CarMax is currently buying back shares. |
Share Repurchases Value Per Share Capital Allocation Free Cash Flow Undervalued Shares | |
| 2025 Q2 |
HealthcareSignificant focus on healthcare investments including UnitedHealth Group despite operational challenges and IQVIA Holdings as the largest CRO globally. Healthcare represents both value opportunities and operational turnaround situations with stable underlying business models. |
Managed Care CRO & CDMO Healthcare IT Medicare Optum |
AIMicrosoft positioned as key beneficiary of AI growth with Azure acceleration driven by AI contributions. AI represents a significant growth tailwind for cloud computing and enterprise software businesses. |
Cloud Azure Enterprise Software Hyperscale Infrastructure | |
Alternative Asset ManagersAres Management highlighted as high-quality alternative asset manager with leading private credit franchise. The firm benefits from secular growth tailwinds and locked-up capital creating annuity-like fee streams. |
Private Credit Asset Managers Fee Streams Capital Markets Credit | |
VolatilityMarket volatility from tariff concerns created opportunities to execute investment philosophy by reallocating capital from higher-priced to lower-priced companies. Volatility enables increased margin of safety for disciplined value investors. |
Tariffs Margin of Safety Price Discovery Risk Management Opportunity | |
| 2025 Q1 |
VolatilityMarket volatility returned during the first quarter, creating opportunities to execute dual investment discipline by purchasing stable value businesses at lower prices with larger margins of safety. The firm welcomes volatility as it provides opportunities to improve price-to-value ratios across all strategies. |
Market volatility Price discovery Margin of safety Risk management Opportunity |
ValueThe firm focuses on companies with stable values that are more stable than their stock prices. They seek to limit investments to companies with stable values and use increased market volatility to purchase these businesses at lower prices with correspondingly larger margins of safety. |
Intrinsic value Price to value Stable value Margin of safety Value investing | |
CloudCloud computing ecosystem companies including Amazon, Microsoft, and Alphabet sold off during the first quarter. Microsoft's Azure cloud computing business continues to grow at double-digit rates, and Amazon benefits from secular tailwinds in cloud transition. |
Cloud computing Azure AWS Digital transformation SaaS | |
| 2024 Q4 |
ValueVulcan follows a disciplined value approach, reallocating capital from companies whose prices rose faster than values into companies whose prices did not keep up with values. They maintain attractive price to value ratios despite double-digit returns and focus on companies with stable values and margins of safety. |
Value Margin of Safety Price to Value Intrinsic Value Discipline |
Alternative Asset ManagersThe firm has significant exposure to alternative asset managers including Carlyle Group, Partners Group, and KKR. They view the industry favorably due to long-term capital providing annuity-like fee streams and increasing capital flows into private markets. |
Alternative Asset Managers Private Markets Fee Streams Capital Flows | |
InsuranceVulcan added Everest Group, a global reinsurance and insurance business known for disciplined underwriting. They focus on companies that emphasize growing intrinsic value per share over managing short-term earnings through market cycles. |
Insurance Reinsurance Underwriting Book Value Cyclical | |
CloudThe portfolio includes cloud-focused companies like Amazon and Salesforce. Amazon benefits from cloud transition tailwinds while Salesforce is the leading SaaS vendor for CRM with high retention and recurring revenue. |
Cloud SaaS CRM Recurring Revenue Digital Transformation | |
| 2024 Q3 |
Commercial Real EstateMultiple commercial real estate service providers benefited from falling interest rates and improving transaction volumes. Companies like CBRE, Colliers, and Cushman & Wakefield are positioned to benefit from the recovery in real estate markets as rates decline. |
Real Estate Services Interest Rates Transaction Volumes Property Management Recovery |
LuxuryLVMH represents exposure to the luxury goods sector with its portfolio of 75 luxury brands. After years of above-trend growth, sales growth has slowed and profits are expected to decline marginally, but the company can compound value at low double-digit rates over the long term. |
Luxury Goods Brand Equity Global Portfolio Long-term Growth Premium Brands | |
Alternative Asset ManagersPartners Group and KKR provide exposure to the growing alternative asset management space. Partners Group benefits from annuity-like fee streams and increasing capital flows into private markets, while KKR continues to execute well across multiple alternative asset classes. |
Private Markets Fee Streams Capital Flows Asset Management Alternative Investments | |
ReinsuranceEverest Group represents disciplined reinsurance underwriting with focus on growing tangible book value per share. The company underwrites aggressively in hard markets and builds capacity during soft markets, emphasizing long-term intrinsic value growth over short-term earnings management. |
Insurance Cycles Underwriting Discipline Book Value Growth Hard Markets Cyclical Business | |
| 2024 Q2 |
AIGenerative AI continues to drive cloud adoption and presents opportunities rather than threats to enterprise software companies. AI is accelerating cloud penetration and driving higher revenue per customer through specific product adoption. |
Cloud Enterprise Software Automation Revenue Growth |
CloudCloud revenue growth remains strong and in line with expectations. Cloud penetration is still in the low 20% range with significant room for expansion, particularly as AI accelerates adoption. |
SaaS Enterprise Software Migration Penetration | |
ValueThe firm follows disciplined value investing by adding to positions when price-to-value ratios improve and reallocating capital to more discounted companies when opportunities arise. |
Discount Price to Value Margin of Safety Discipline | |
| 2024 Q1 |
CloudCloud revenue growth continues to meet expectations at NICE, with generative AI driving cloud adoption. Amazon's cloud transition remains a powerful secular tailwind. Microsoft's Azure cloud computing continues to execute well. |
SaaS Enterprise Software Cloud Infrastructure AI Digital Transformation |
AIGenerative AI is viewed as an opportunity rather than a threat to NICE's business, driving cloud adoption. Salesforce highlighted artificial intelligence as having potential to accelerate future growth. |
Generative AI Machine Learning Enterprise Software Automation Cloud | |
TravelLive entertainment industry has grown in high single-digits over two decades with demand exceeding supply. Air travel continues to rebound from the pandemic, benefiting TransDigm's aerospace business with double-digit organic revenue growth. |
Entertainment Airlines Aerospace Tourism Recovery | |
E-commerceAmazon's ecommerce penetration remains a powerful secular tailwind. The company reduced cost to serve on a per unit basis for the first time since 2018 as regionalization efforts bear fruit. |
Digital Commerce Logistics Marketplaces Consumer Technology | |
| 2023 Q4 |
AIMicrosoft is benefiting from its investments in artificial intelligence. The company is well positioned from an AI standpoint which should further underpin sustainable cloud penetration and growth. Salesforce is constantly innovating with new products, features, and artificial intelligence to deepen customer relationships and grow the business. |
Artificial Intelligence Cloud Computing Innovation Technology |
Commercial Real Estate2022 and 2023 have been very challenging years for commercial real estate, driven by a severe decline in property sales and leasing transactions. During the last two months of 2023, we saw significant appreciation in commercial real estate stocks, most likely due to an improving interest rate outlook, which should spur commercial real estate owners and investors to begin transacting again. |
Interest Rates Property Sales Leasing Real Estate Services | |
Capital MarketsThe rise in interest rates over the past year has put pressure on both private market transaction activity and fundraising for alternative asset managers. Better than expected inflation news during the quarter has created the expectation that the Fed could begin lower rates in 2024 which could result in normalization in business activity. |
Alternative Assets Private Equity Interest Rates Fundraising | |
CloudCustomer absorption of previous technology spend is occurring faster than expected which has stabilized cloud growth. Microsoft is benefiting from growth tailwinds such as cloud computing and artificial intelligence. The company is well positioned from an AI standpoint which should further underpin sustainable cloud penetration and growth. |
Cloud Computing Technology Spend Digital Transformation Growth | |
| 2023 Q3 |
ValueThe firm focuses on purchasing high-quality businesses trading at substantial discounts to intrinsic value with sustainable competitive advantages. They target companies with pricing power, strong margins, and high returns on invested capital across multiple strategies. |
Discount Intrinsic Value Competitive Advantage Quality Margin of Safety |
HealthcareUnitedHealth Group represents the largest health insurer with growing healthcare services through Optum. The company benefits from demographic trends and network effects, with Optum generating roughly half of 2022 EBIT and serving over 100 health payer partners. |
Health Insurance Demographics Network Effects Healthcare Services | |
SemiconductorsTexas Instruments operates as the world's largest analog semiconductor designer and manufacturer. The company benefits from mission-critical products, low cost as percentage of total system cost, stable market positions, and high barriers to entry with long-term strategic thinking. |
Analog Mission Critical Barriers to Entry Strategic Thinking | |
| 2023 Q2 |
CruisesCruise lines were among the most contrarian holdings that drove the fund's biggest wins. Royal Caribbean surged 109.9% and Norwegian up 77.9% through June 30th as the vacation and leisure spaces are booming in response to isolating Covid lockdowns. The fund doubled down on these scorned holdings during the pandemic when they were trading at historic lows. |
Travel Leisure Recovery Contrarian Covid |
Real EstateWidespread disdain for real estate and real estate related companies in a higher interest rate environment is today's bad neighborhood offering a bevy of investment opportunities. The managers get excited when whole areas of the market are written off because there are often good stocks in bad neighborhoods. |
Interest Rates Contrarian Opportunity Valuation | |
ValueThe fund's emphasis on low PE stocks trading at low multiples of expected earnings has been a near-term performance headwind but positions them well for a market nearing the end of Fed tightening. They believe they are well-positioned as the market begins to look past Federal Reserve tightening. |
Multiples Fed Positioning Opportunity | |
FertilizersInvestment in Mosaic is based on long-term trends supporting increasing demand for agricultural fertilizers including global population growth, improving protein-based diets, and climate change reducing arable land. However, the company's stock price is highly volatile and subject to commodity price vagaries. |
Agriculture Population Commodities Volatility | |
| 2023 Q1 |
CloudMicrosoft's Azure growth decelerated during the quarter with further deceleration expected next quarter. The company is managing expenses to preserve margins while benefiting from bundling advantages during economic stress. Microsoft's partnership with OpenAI represents a complex and rapidly developing opportunity. |
Azure Microsoft OpenAI ChatGPT Bundling |
AIMicrosoft's announcements around ChatGPT and OpenAI, including their partnership and investment in OpenAI, represent a complex and rapidly developing opportunity. This demonstrates Microsoft's competitive advantages and optionality from future AI opportunities. |
ChatGPT OpenAI Microsoft Partnership Investment | |
E-commerceAmazon experienced revenue growth across all three segments: AWS, Advertising, and Retail despite slowing growth and macro headwinds. The company is addressing its cost structure to better align with slower growth rates while maintaining its dominant position. |
Amazon AWS Advertising Retail Cost Structure | |
BuybacksSalesforce expanded its stock buyback plan from $10 billion to $20 billion as part of its focus on improving margins and deemphasizing acquisitions. The company is taking steps to increase profitability more quickly than expected. |
Salesforce Stock Buyback Margins Profitability Capital Allocation | |
Energy TransitionGE Vernova helps generate 30% of the world's electricity and has a meaningful role to play in the energy transition. The company's service activities represent approximately 60% of revenue and 85% of its backlog. |
GE Vernova Electricity Energy Transition Service Activities Backlog | |
Private CreditAres Management has a leading market share in credit products among alternative asset managers. These credit products generate fee-related revenue and translate to stable earnings power, benefiting from increasing investor demand for private credit assets. |
Ares Management Credit Products Fee Revenue Private Credit Alternative Assets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus Plus | SAP | SAP SE | Software - Application | Systems Software | Bull | New York Stock Exchange | AI Beneficiary, Enterprise software, ERP, Germany, Mission-Critical, network effects, switching costs, Systems Software | Login |
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus Plus | ARES | Ares Management Corporation | Asset Management | Asset Management & Custody Banks | Bull | New York Stock Exchange | Alternative Asset Manager, asset management, Credit Losses, institutional capital, Low Default Rates, Private Credit, Senior Credit | Login |
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus Plus | RYAN | Ryan Specialty Holdings | Insurance - Specialty | Insurance Brokers | Bull | New York Stock Exchange | AI Beneficiary, Complex Risks, cyclical market, E&S Insurance, Insurance Broker, market share gains, specialty insurance | Login |
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus | SAP | SAP SE | Software - Application | Systems Software | Bull | New York Stock Exchange | AI integration, Enterprise software, ERP software, Global Enterprise, Mission-Critical, network effects, switching costs | Login |
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus | ARES | Ares Management Corporation | Asset Management | Asset Management & Custody Banks | Bull | New York Stock Exchange | Alternative Asset Manager, asset management, Credit Discipline, fee income, institutional capital, Private Credit, Senior Debt | Login |
| Apr 21, 2026 | Fund Letters | Vulcan Value Partners - Focus | RYAN | Ryan Specialty Holdings | Insurance - Specialty | Insurance Brokers | Bull | New York Stock Exchange | Complex Risks, Cyclical Recovery, Excess & Surplus, insurance brokerage, market share gains, Relationship-Driven, Specialized Insurance | Login |
| 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 |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | UNH | UnitedHealth Group Inc. | Health Care | Health Care Plans | Bull | NYSE | Government Policy Risk, health insurance, Healthcare services, Leadership Change, managed care, Medicare Advantage, turnaround, Value | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | IQV | IQVIA Holdings Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | Biotech, Clinical trials, contract research organization, Cro, drug development, Healthcare Data, life sciences, Pharmaceutical Services, Value | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | MSFT | Microsoft Corp. | Information Technology | Systems Software | Bull | NASDAQ | AI, Artificial Intelligence, Azure, Bundling, Cloud computing, Gaming, growth, Linkedin, productivity software, Software | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | ARES | Ares Management Corp. | Financials | Asset Management & Custody Banks | Bull | NYSE | alternative asset management, Annuity-like Fees, Asset Manager, Counter-cyclical, Credit, defensive, Private Credit, Value | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | ISS.CO | ISS A/S | Industrials | Commercial Services & Supplies | Bull | Copenhagen Stock Exchange | Commercial Services, defensive, Denmark, Facilities Management, Free Cash Flow, global scale, Outsourcing, recurring revenue | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | LFUS | Littelfuse Inc. | Information Technology | Electronic Components | Bull | NASDAQ | automotive, Circuit Protection, Cyclical, Electric Vehicles, Electronic Components, Industrial automation, industrial manufacturing, Niche markets, renewable energy | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | AMZN | Amazon.com Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | AWS, Cloud computing, digital advertising, e-commerce, growth, retail, technology platform | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Neutral | NASDAQ | AI, antitrust, Artificial Intelligence, digital advertising, Google, Regulatory risk, Search, Technology Disruption | Login |
| Jun 30, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | FORT.L | Forterra plc | Materials | Construction Materials | Bull | London Stock Exchange | Bricks, construction materials, Cyclical, Import Protection, oligopoly, Structural Undersupply, UK housing, Value | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | MEDP | Medpace Holdings Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biotechnology Services, Cro, drug development, Free Cash Flow, growth, healthcare | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | SWK | Stanley Black & Decker | Industrials | Machinery | Bull | NYSE | Cyclical, Housing, Industrial, manufacturing, restructuring, Tools, Value | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | TPG | TPG Inc. | Financials | Capital Markets | Bull | NASDAQ | alternative assets, asset management, fee income, Fundraising, growth, private equity | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | JLL | Jones Lang LaSalle Inc. | Real Estate | Real Estate Management & Development | Bull | NYSE | commercial real estate, consolidation, Diversified, Free Cash Flow, services, Variable Costs | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | ISS | ISS A/S | Industrials | Commercial Services & Supplies | Bull | Copenhagen Stock Exchange | Cost Pass-through, Denmark, Facilities Management, global scale, Outsourcing, shareholder returns | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | ITRN | Ituran Location and Control Ltd. | Technology | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | Brazil, Insurance, Israel, recurring revenue, RF Technology, Subscription, Vehicle Recovery | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | PRG | PROG Holdings Inc. | Financials | Consumer Finance | Bull | NYSE | consumer finance, Lease-to-Own, Non-Prime, Retail Partners, turnaround, Value | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | SWKS | Skyworks Solutions Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bear | NASDAQ | competitive moat, Cyclical, Market Share Loss, Mobile, Rf Semiconductors, Wireless Infrastructure | Login |
| Mar 31, 2025 | Fund Letters | Vulcan Value Partners - Focus Plus | SODEXO.PA | Sodexo SA | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | Euronext Paris | customer retention, defensive, Facilities Management, family ownership, Food Services, france, Outsourcing | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | NICE | NICE Ltd. | Information Technology | Application Software | Bull | NASDAQ | Artificial Intelligence, Cloud computing, Contact center, Enterprise software, Mission-Critical, recurring revenue, SaaS, technology | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | PLNT | Planet Fitness Inc. | Consumer Discretionary | Leisure Facilities | Bull | NYSE | Consumer Discretionary, expansion, Fitness Centers, franchise model, Low Price Strategy, market share growth, recurring revenue, subscription revenue | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | QRVO | Qorvo Inc. | Information Technology | Semiconductors | Bull | NASDAQ | barriers to entry, Cyclical Recovery, Internet of Things, Mobile Devices, oligopoly, Radio-Frequency, semiconductors, telecommunications | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | KMX | CarMax Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Captive Finance, cost structure, digital infrastructure, Fragmented Market, market share gains, Omnichannel, operational efficiency, used car retail | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | SDIP.ST | Sdiptech AB | Industrials | Industrial Conglomerates | Bull | Stockholm Stock Exchange | acquisition strategy, Competitive Moats, infrastructure, Long-term Management, Niche markets, Portfolio company, Sustainability, value investing | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | Algorithm Efficiency, Artificial Intelligence, innovation, margin expansion, Revenue Growth, search engine, Technical Prowess, technology platform | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | CSGP | CoStar Group Inc. | Real Estate | Real Estate Services | Bull | NASDAQ | Data Analytics, founder-led, information services, market leader, Mission Critical Data, Real Estate Services, recurring revenue, subscription revenue | Login |
| Jun 30, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | ISS.CO | ISS A/S | Industrials | Commercial Services & Supplies | Bull | Copenhagen Stock Exchange | defensive business, Facility Management, global scale, Margin Improvement, Non-core Services, Normalized Environment, Outsourcing Trend, Sticky Relationships | Login |
| Mar 31, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | LYV | Live Nation Entertainment Inc. | Communication Services | Entertainment | Bull | NYSE | Artist Management, Concert Promotion, Entertainment Services, growth, Live entertainment, market leader, Ticketing, Touring, Venue Operations | Login |
| Mar 31, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | KMX | CarMax Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Auto finance, cost structure, digital infrastructure, Fragmented Market, market share gains, Omnichannel, turnaround, used car retail, Wholesale | Login |
| Mar 31, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | SBUX | Starbucks Corp. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Coffee Retail, Consumer Discretionary, Customer loyalty, Free Cash Flow, Global Brand, management changes, Real Estate, store expansion, Value | Login |
| Mar 31, 2024 | Fund Letters | Vulcan Value Partners - Focus Plus | CCK | Crown Holdings Inc. | Materials | Metal & Glass Containers | Bull | NYSE | Aluminum cans, barriers to entry, Beverage Packaging, Consolidated Industry, Free Cash Flow, Inflationary Pass-Through, market share gains, materials, Sustainability | Login |
| Sep 30, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | DEO | Diageo plc | Consumer Staples | Distillers & Vintners | Bull | LSE | brand portfolio, consumer staples, Global, premium brands, premiumization, Pricing power, Recession-resistant, Spirits | Login |
| Sep 30, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | AMAR | Marriott International Inc. | Consumer Discretionary | Hotels, Resorts & Cruise Lines | Bull | NASDAQ | asset-light, brand portfolio, Conversion Growth, Franchising, Free Cash Flow, Hotels, network effects, Travel Recovery | Login |
| Sep 30, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | TXN | Texas Instruments Inc. | Information Technology | Semiconductors | Bull | NASDAQ | Analog, Free Cash Flow, High Barriers, long-term strategy, market leadership, Mission-Critical, Power management, semiconductors | Login |
| Sep 30, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | AAPL|MSFT|NFLX|NVDA|UNH | UnitedHealth Group Inc. | Health Care | Managed Health Care | Bull | NYSE | Demographics, Dual Engine Growth, health insurance, Healthcare services, market leadership, network effects, Optum, Scale Advantages | Login |
| Sep 30, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | DEEPSEEK | Sealed Air Corp. | Materials | Paper Packaging | Bull | NYSE | Brand Leadership, Cryovac, e-commerce, Food Safety, Mission-Critical, Packaging, Sticky Relationships, switching costs | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | IHG | InterContinental Hotels Group plc | Consumer Discretionary | Hotels, Resorts & Cruise Lines | Bull | London Stock Exchange | asset-light, brand recognition, Franchising, Global, hospitality, Hotels, loyalty program, pipeline development, RevPAR, Travel | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | UPS | United Parcel Service Inc. | Industrials | Air Freight & Logistics | Bull | New York Stock Exchange | barriers to entry, Free Cash Flow, Integrated Network, Labor Relations, Logistics, Margin Improvement, oligopoly, parcel delivery, Returns on Capital | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | ACWI | Curtiss-Wright Corp. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, Aircraft Carriers, Defense, Defense spending, geopolitical risk, Mission-Critical, Niche markets, Nuclear Submarines, Sole Source, Technical Expertise | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | AYI | Acuity Brands Inc. | Industrials | Electrical Equipment | Bull | New York Stock Exchange | Building Management, capital allocation, Free Cash Flow, LED Technology, Lighting, market leader, North America, Pricing power, share repurchases, Smart Buildings | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | CNM | Core & Main Inc. | Industrials | Trading Companies & Distributors | Bull | New York Stock Exchange | Aging Infrastructure, Buying Power, consolidation, Distribution, Fragmented Market, infrastructure spending, market share gains, Municipal Customers, National Scale, Water infrastructure | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | DEEPSEEK | Sealed Air Corp. | Materials | Paper & Plastic Packaging Products & Materials | Bull | New York Stock Exchange | brand recognition, Bubble Wrap, Consumables, Cryovac, e-commerce, Equipment Sales, Food Safety, global scale, Protective Packaging, switching costs | Login |
| Mar 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | ARES | Ares Management Corp. | Financials | Asset Management & Custody Banks | Bull | New York Stock Exchange | alternative asset management, AUM growth, Credit Market Share, Fee-Related Revenue, Institutional Investors, Private Credit, Private Equity Sponsors, Relationship-Driven, Scale Advantages | Login |
| Dec 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | DEO | Diageo plc | Consumer Staples | Distillers & Vintners | Bull | LSE | consumer staples, Free Cash Flow, Global distribution, premium brands, Pricing power, Regulated Industry, Spirits, Value | Login |
| Dec 31, 2023 | Fund Letters | Vulcan Value Partners - Focus Plus | - | Bureau Veritas SA | Industrials | Research & Consulting Services | Bull | Euronext Paris | Certification, defensive, global diversification, Inspection, Mission-Critical, regulatory compliance, secular growth, Testing Services | Login |
| TICKER | COMMENTARY |
|---|---|
| UNH | UnitedHealth is the largest private health insurer in the country. We purchased UnitedHealth Group a little over a year ago after its stock price had declined from approximately $600 per share to under $300 per share as the company missed earnings and replaced its CEO. As a reminder, UnitedHealth Group has been on the MVP list for a number of years and we have owned it successfully several times over the last decade. After a thorough review of the company's competitive position and assessment of the new management team, we determined that UnitedHealth Group's value was stable and that the company should be able to return to steady earnings growth within a year or so. Since that time the company has executed even better than we expected. 'Mr. Market' is beginning to recognize what we saw a year ago and UnitedHealth Group's discounted shares are beginning to recover. In fact, the company's stock increased by more than 35% through the first half of the quarter prior to our exit while our value remained stable. Following our discipline, we sold UnitedHealth Group in our Focus portfolio to reallocate capital into meaningfully more discounted companies whose values are compounding at attractive double-digit rates. |
| AMZN | Amazon.com reported strong results during the first quarter. AWS revenue growth accelerated to 28%, its fastest growth rate in 15 quarters. Amazon Bedrock, a fully managed service providing secure access to leading large language models, grew 170% quarter-over-quarter. 125,000 customers are using Amazon Bedrock including 80% of the Fortune 100. Most of Amazon Bedrock's inference demand is powered by Amazon's internal Trainium chips. Amazon's chips business, which consists of Trainium and Graviton, is now over a $20BN run-rate business growing triple-digits year-over-year. Amazon's utilization of its own proprietary chips helps moderate capex spend relative to competitors. Advertising revenue growth remains in the low 20%. The core retail business (retail excluding advertising) continues to show improving profitability despite rising launch costs for Amazon's satellite service. Paid unit growth in the core retail business was 15% in the quarter, the fastest unit growth in 19 quarters. Amazon remains a dominant world-class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the transition to the cloud. |
| RYAN | Ryan Specialty Holdings, Inc., reported 11.8% organic revenue growth during the first quarter. However, the company cut its 2026 organic revenue outlook to mid-single-digit growth from its prior outlook of high-single-digit growth. The excess and surplus (E&S) market continues to grow submissions (volumes) at robust levels, but 25% to 35% property rate declines are pressuring premium growth. For instance, in 2025 total E&S premiums grew by 8%, while submissions grew by 14%. For the first six months of 2026, California E&S premiums grew 4%, while submissions grew 23%. Florida E&S premiums declined 6%, while submissions grew 15%. Texas E&S premiums grew 5%, while submissions grew 21%. These three states report monthly stamping data and together they account for roughly 45% of the E&S market. We are encouraged to see the continued robust submission growth and we believe the rate pressure is a short-term phenomenon, not a structural issue. In late May, Ryan increased its share repurchase authorization by an additional $300MM after exhausting its first ever authorization in the first five months of 2026. In early June, five insiders bought stock on the open market including Pat Ryan, Founder & Executive Chairman, and Janice Hamilton, CFO. Ryan's stock price was volatile during the second quarter while its value remained stable. We added to our position in Ryan early in the quarter when its price to value ratio was more attractive. |
| EG | Everest Group is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. Insurance is an inherently cyclical business. 'Hard markets' occur when premium prices are high relative to insured risks. Hard markets inevitably attract more capital to the industry, causing premium prices to fall relative to insured risks, which results in a 'soft market.' Soft markets lead undisciplined underwriters to post underwriting losses, removing capital from the industry, and the cycle repeats. We entered a soft market last year. In evaluating insurance companies, we believe that growth in tangible book value per share more closely approximates growth in intrinsic value per share than does growth in earnings per share. Compounding book value per share requires underwriting discipline. Moreover, given the cyclical nature of the business, a disciplined underwriter will have more volatile earnings in the short run than an undisciplined underwriter. Everest Group underwrites aggressively in hard markets and builds underwriting capacity during soft markets. During the most recent hard market, the company has significantly grown book value per share. We applaud Everest Group's emphasis on growing intrinsic value per share over the long term instead of managing short-term earnings per share. Insurance companies that allocate capital intelligently, and therefore produce underwriting profits, are worth two times tangible book value or more. Numerous comps support this conclusion. Everest Group trades at less than one times tangible book value. The company is allocating capital brilliantly in our opinion. In the current soft market, the company shrinking their top line and building balance sheet strength which it will deploy when the market inevitably turns hard again. In the meantime, the company is using 100% of its FCF and proceeds from less profitable businesses that it is exiting to buy its stock at less than 50% of our estimate of fair value and below tangible book value. Consequently, in a soft market with declining revenue, we are enjoying double-digit value growth per share. |
| GOOGL | Alphabet delivered robust results during the first quarter. Core Google Search revenue accelerated to 19%, the fastest growth in 16 quarters. AI continues to be an expansionary moment for search as search queries are at an all-time high. Google Cloud revenue growth accelerated to 63%, the fastest growth rate it has ever reported. Google Cloud margins expanded to 33%, up from 18% in the first quarter of 2025. Google Cloud backlog grew 5X year-over-year with growth driven by enterprise AI offerings and TPU sales. While we have always had high expectations for Google's Cloud business, its performance over the last several years has simply been astonishing. Google Cloud is now roughly 40% of our value for the company. As a reminder, 2023 was the first year that Google Cloud posted positive EBIT. Consensus estimates for Google Cloud 2027 EBIT are $54BN, a stark contrast to the negative EBIT margin business at $26BN of revenue in 2022. Thomas Kurian, CEO of Google Cloud, and Alphabet's entire leadership team deserve a round of applause. We continue to monitor the AI disruption risks across all of our portfolio companies and MVP businesses. |
| TDG | TransDigm is an aerospace company making OEM and aftermarket parts for commercial and military aircraft. Approximately 90% of its net sales are from proprietary parts. TransDigm reported double-digit organic revenue and profit growth in its most recent quarter. The company produces robust FCF and is using its FCF to repurchase its discounted stock. Despite headwinds from the Iranian War, the company raised its guidance as strength in other areas more than offset weakness in the Middle East. Similar to Ryan, TransDigm's stock price was volatile during the second quarter while our estimate of its fair value grew at a double digit rates. We added to our position in TransDigm early in the quarter when its price to value ratio was more attractive. |
| SAP | SAP is the global leader in enterprise resource planning (ERP) software, which serves as the operating system for many of the world's largest companies. SAP's ERP solutions often have decades of embedded data, business processes, and software customizations. It is extremely rare for companies to switch ERP vendors due to the cost, time, and disruption risk that switching creates. SAP's Q1 results were very strong, with total revenue up 12% and EBIT up 16%. Cloud revenue grew 27% and their cloud backlog grew 25%. They also repurchased €2.6B of stock in the quarter and maintained full-year guidance. Our value continues to grow and we believe its shares remain significantly discounted. We took advantage of stock price volatility to add to our position in SAP during the quarter. |
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