| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.6% | -1.5% | 7.9% |
| 2025 | 2024 |
|---|---|
| 7.9% | 17.5% |
Vulcan Value Partners delivered positive returns across all strategies in 2025 while meaningfully improving price-to-value ratios in a challenging environment. The manager draws parallels between current market conditions and the late 1990s dot-com era, noting AI stocks contributed approximately 61% of S&P 500 returns and the largest 10 market cap stocks accounted for over 50% of index performance. Despite this headwind for value investing, the firm successfully repositioned portfolios toward more discounted opportunities, particularly in healthcare and insurance sectors. The Small Cap portfolio trades at a weighted average price-to-value ratio in the mid-50s, representing exceptional opportunity. Key example Medpace demonstrated the power of patient value investing, rising 73% for the year after the company repurchased 8% of shares at 50% of intrinsic value. The manager remains fully invested across all strategies with improved margins of safety, positioning for long-term compounding as market conditions normalize and value investing reasserts itself.
Value investing discipline focused on high-quality businesses with sustainable competitive advantages purchased at substantial discounts to intrinsic value, while avoiding overvalued AI and large-cap momentum stocks dominating current market returns.
Manager expresses strong optimism about portfolio positioning for long-term compounding, with all strategies showing improved price to value ratios. Small Cap leads as most discounted, while Large Cap, Focus, and Focus Plus all have ratios in low 60s. Believes portfolios are full of companies similar to Medpace that will compound value over time.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | CBRE, CRM, CSGP, EVER, FI, GOOGL, ITRN, KMX, MC.PA, MEDP, MSFT, QRVO, RI.PA, RYAN, SSNC, STLA, SW, SWKS, TRU, UNH | AI, Buybacks, healthcare, insurance, small caps, technology, value | - | Manager emphasizes value investing discipline, focusing on companies trading at substantial discounts to intrinsic value. Portfolio weighted average price to value ratio improved to low… |
| Oct 14 2025 | 2025 Q3 | CBRE, FI, GOOG, KMX, MEDP | Buybacks, fundamentals, Quality, tariffs, value |
FISV MEDP GOOGL |
The letter highlights disciplined investing in stable value companies like Fiserv and CBRE, focusing on margin of safety and repurchases at attractive valuations. Volatility from… |
| Jun 30 2025 | 2025 Q2 | - | Competitive Advantage, free cash flow, large cap, Valuation discipline, value | - | The fund highlights large-cap companies with durable competitive advantages and strong free cash flow generation. Valuation discipline is prioritized amid elevated index-level multiples and style… |
| Apr 9 2025 | 2025 Q1 | MEDP, SWK, SWKS, TPG | - | - | - |
| Dec 31 2024 | 2024 Q4 | CCK, ELV, HEIA NA, KKR, QRVO, RI FP, RTO LN, SW FP, UNH | - | - | - |
| Oct 9 2024 | 2024 Q3 | EG, JLL, MC FP, PGHN SW | - | - | - |
| Jul 12 2024 | 2024 Q2 | NICE IT | - | - | - |
| Apr 25 2024 | 2024 Q1 | GE, KKR, KMX, LYV, NICE IT, SBUX, TDG | - | - | - |
| Jan 17 2024 | 2023 Q4 | AMZN, BVI FP, CG, CRM, JLL, KKR, MSFT, TDG | - | - | - |
| Oct 10 2023 | 2023 Q3 | DEO, LRCX, MAR, TXN, UNH | - | - | - |
| Jul 31 2023 | 2023 Q2 | AMZN, CSGP, FI, MSFT, SSNC, TDG | - | - | - |
| Mar 31 2023 | 2023 Q1 | IHG, MSFT, UPS | - | - | - |
| Sep 2 2023 | 2022 Q4 | ABT, AMAT, AMZN, BALL, GE, META, NICE, SPLK, TDG | - | - | - |
| Sep 11 2022 | 2022 Q3 | APP, ARES, ELV, NVDA | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
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 | |
Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses | |
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 |
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 |
Quality 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 | Fiserv Inc. | Other | Financial Technology | Bull | NASDAQ | buybacks, compounding, Fintech, Payments, recurring revenue | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | MEDP | Medpace Holdings Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biotech, buybacks, Clinical research, FCF, growth | Login |
| Oct 14, 2025 | Fund Letters | C.T. Fitzpatrick | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, cash flow, cloud, Digital ads, growth, Regulation | 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 | The holdings in Applied Materials, Elevance Health, LVMH and Anheuser-Busch InBev were exited |
| 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. |
| RI.PA | Pernod Ricard declined due to concerns about slowing global spirits demand. While these headwinds persist, we remain confident in Pernod's strong brand portfolio and pricing power, which should support long-term prospects. |
| RYAN | Ryan Specialty Holdings, Inc. is a commercial excess and surplus insurance broker with a delegated authority business. The company was founded by Pat Ryan in 2010. Pat Ryan is one of the insurance industry's crucial pioneers, having also founded Aon where he served as the CEO and Chairman for 41 years. The excess and surplus market has grown at an 11% CAGR while the admitted market has grown at a 4% CAGR over the last 25 years. The portion of Ryan Specialty's business exposed to commercial property is entering a soft pricing cycle, which has pushed the stock well below intrinsic value. |
| SSNC | SS&C Technologies Holdings Inc represents 2.68% of top holdings |
| STLA | Stellantis is one of three separately listed businesses that account for around half of Exor's net asset value. |
| SW | The investment case for Smurfit Westrock is largely a self-help story, following the merger of the two companies (Smurfi Kappa and Westrock). We believe the best practices in place at Smurfit can be successfully deployed within Westrock, providing an uplift to aggregate margins and profits. We also anticipate a healthier demand environment for the corrugated markets in which the company operates. |
| 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 | United Healthcare had its own challenges, with surprise losses, a complicated political situation, and leadership changes. |
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