| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.4% | 3.2% | 9.5% |
| 2025 | 2024 |
|---|---|
| 9.5% | 1.3% |
Vulcan Value Partners delivered positive returns across all strategies in 2025 while meaningfully improving price to value ratios, particularly in Small Cap which trades at mid-50s price to value ratio. The manager draws parallels to late 1990s, noting AI stock concentration driving market returns similar to dot-com era, with 61% of S&P 500 gains from AI stocks. While broader markets appear overvalued, the firm finds tremendous opportunities in overlooked segments, particularly Small Caps and companies outside the top 10 mega-cap stocks. The portfolio has shifted toward more healthcare and insurance businesses, with successful investments like Medpace demonstrating the value creation potential. Everest Group and Ryan Specialty represent quality insurance companies trading at discounts despite strong fundamentals. The manager emphasizes following disciplined investment approach, buying only companies from their MVP list with sustainable competitive advantages at attractive valuations. With healthy economy, declining interest rates, and improved margins of safety across portfolios, the firm believes it is well-positioned for long-term value compounding despite short-term relative performance headwinds.
Value investing discipline focused on high-quality businesses with sustainable competitive advantages purchased at substantial discounts to intrinsic value, particularly in overlooked Small Cap segment where price to value ratios offer exceptional margin of safety.
Manager expresses strong optimism about portfolio positioning for long-term compounding, with improved price to value ratios across all strategies while maintaining positive absolute returns. Believes portfolios are full of companies similar to Medpace that will compound value over time, though timing of rewards cannot be controlled.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | CBRE, CRM, CSGP, FISV, GOOGL, ITRN, KMX, MC.PA, MEDP, MSFT, QRVO, RE, RI.PA, RYAN, SSNC, STLA, SW.PA, SWKS, TRU, UNH | AI, discount, insurance, Quality, small cap, value |
EG ITRN |
Manager emphasizes value investing discipline, focusing on companies trading at substantial discounts to intrinsic value. Small Cap portfolio has weighted average price to value ratio… |
| Oct 14 2025 | 2025 Q3 | KMX, MEDP | Capital Allocation, free cash flow, Quality, small caps, value | - | Vulcan highlights disciplined capital allocation amid volatile markets, using price-to-value ratios to identify stable value companies. The fund added Fiserv as a discounted high-quality business… |
| Jun 30 2025 | 2025 Q2 | - | alpha, Inefficiency, operational leverage, small cap, value |
IQV MSFT ISS DC |
The commentary focuses on small-cap inefficiencies where fundamentals diverge from market pricing. Smaller companies are seen as offering greater upside as operational improvements and capital… |
| Apr 9 2025 | 2025 Q1 | ISS DC, ITRN, JLL, PRG | - | - | - |
| Dec 31 2024 | 2024 Q4 | 938 GR, FBIN, MIDD, PBH CN, QRVO, SMRT, VCP LN | - | - | - |
| Oct 9 2024 | 2024 Q3 | CIGI, CWK, IBST LN, PRG | - | - | - |
| Jul 12 2024 | 2024 Q2 | 938 GR, KMX, PLNT, QRVO | - | - | - |
| Apr 25 2024 | 2024 Q1 | CCK, CNM, MEDP | - | - | - |
| Jan 17 2024 | 2023 Q4 | 938 GR, CIGI, CWK, FORT LN, IBST LN, ISS DC, MEDP, PK, VCP LN, VRT AU | - | - | - |
| Oct 10 2023 | 2023 Q3 | FWRD, ITRN, MLKN, SMRT | - | - | - |
| Jul 31 2023 | 2023 Q2 | CWK, DNB, ENS, G, MLKN, PRG | - | - | - |
| Mar 31 2023 | 2023 Q1 | CW | - | - | - |
| Sep 2 2023 | 2022 Q4 | ENS, FWRD, ISS DC, MEDP, VIP GR | - | - | - |
| Sep 11 2022 | 2022 Q3 | CWK, LFUS, MLKN, PRCH, SMRT, TKR | - | - | - |
| 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 |
InsuranceThe insurance operations produced $7.2 million in underwriting profits in 2025 with a combined ratio of 89.7%. First Guard maintained its exceptional record with 114 consecutive quarters of underwriting profit, while Southern Pioneer achieved a 96.4% combined ratio. The creation of Biglari Reinsurance enhanced the group's A rating from AM Best and provides a foundation for acquiring additional insurance companies. |
Underwriting Reinsurance Commercial Profitability Acquisition | |
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 |
Capital AllocationThe holding company structure allows flexible capital deployment across industries without arbitrary constraints. Total investments grew to $1.1 billion, with $225 million in dry powder from Steak n Shake debt financing. The company maintains a decentralized operating model while centralizing capital allocation decisions at the parent level. |
Flexibility Diversification Liquidity Deployment Structure |
Quality Companies |
||
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | C.T. Fitzpatrick | IQV | IQVIA Holdings, Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | analytics, backlog, biopharma, Margins, Outsourcing, Subscriptions, Trials | Login |
| Jun 30, 2025 | Fund Letters | C.T. Fitzpatrick | MSFT | Microsoft Corporation | Information Technology | Systems Software | Bull | NASDAQ | Adoption, Automation, CapEx, cloud, Margins, Partnerships, productivity, Stickiness | Login |
| Jun 30, 2025 | Fund Letters | C.T. Fitzpatrick | ISS DC | ISS A/S | Industrials | Diversified Support Services | Bull | NASDAQ | cashflow, Contracts, deleveraging, efficiency, Outsourcing, turnaround, Wages | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | EG | Everest Group, Ltd. | Financials | Reinsurance | Bull | New York Stock Exchange | Float, margin of safety, Reinsurance, Share Buybacks, Underwriting Profit | Login |
| Jan 18, 2026 | Fund Letters | C.T. Fitzpatrick | ITRN | Ituran Location and Control Ltd. | Information Technology | Application Software | Bull | NASDAQ | Oem Partnerships, Recurring Cash Flow, subscription revenue, Telematics, Vehicle Recovery | 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. |
| FISV | Fiserv is a financial technology company that provides payments and other solutions to merchants and financial institutions. The company's scale, diversification, and ability to compound earnings at a double-digit rate make current valuation attractive. There was a sharp reset in Q3, with the FY25 outlook cut materially after a large miss versus expectations concentrated in the Financial Solutions segment, where both topline growth and profitability disappointed. While 2026 guidance has not been formally introduced, the new CEO framed FY26 as a transition year that resets the long-term growth algorithm to a lower baseline. Once earnings stabilize, we believe Fiserv offers a combination of strong topline growth, margin expansion, and cash generation. |
| 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. |
| 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. |
| 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.PA | We added to our position in Sodexo, the French food services and facilities-management company we began buying in the third quarter. The purchases were made at prices we believe are still attractive, and Sodexo is now a significant position in all four funds. |
| 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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