01

Value Investing

All Cap

02

Strategy Profile

Strategy Characteristics

Number of Holdings
20 - 40
Style
Value
Benchmarks
Russell 3000 Value Index
Russell 3000 Index
03

Investment Strategy

We limit our search for qualifying investments to enduring businesses with identifiable, sustainable competitive advantages which have the ability to consistently produce free cash flow. These types of business typically exhibit value stability. We believe there are two components to the concept of margin of safety. The first component is value stability and the second is the discount at which we can purchase the company. We will hold positions in what we consider to be discounted, value stable companies. This approach leads us to owning what we think are some of the best businesses in the world. We strive to capitalize on the enduring nature of our businesses values as they compound over time.

04

Portfolio Construction

The portfolio represents a subset of our MVP list and typically holds between 20-40 positions in businesses across all market capitalizations. The weight of a security in the portfolio is determined by valuation, with more discounted names typically receiving a higher weight and less discounted names receiving a smaller weight. A core position would be 5%. We will exit a holding should the stock price reach our estimate of fair value, if the company’s competitive position erodes, or when we believe its value is no longer stable. As a company approaches our estimate of fair value, we will begin to trim the position, and proceeds will be allocated to more discounted companies. Our goal is to be fully invested at all times.

Learn more about our Investment Philosophy

05

Vehicles

06

Disclosures

Vulcan Value Partners, LLC is an investment adviser registered with the Securities and Exchange Commission under the Investment Adviser Act of 1940. Please reference Important Disclosures and Definitions and Material Risks included on this website.

Managed Accounts are available only for institutional and private clients of Vulcan Value Partners, LLC, a federally registered investment advisor. Vulcan Value Partners Funds are distributed by ALPS Distributors, Inc. Separately Managed Accounts and related investment advisory services are provided by Vulcan Value Partners, LLC, a federally regulated investment advisor. ALPS Distributors, Inc. is not affiliated with Vulcan Value Partners, LLC.

The composite benchmark is the Russell 3000® Index which measures the performance of the largest 3000 US companies representing approximately 98% of the investable US Equity market. The Russell 3000® Value Index measures the performance of the broad value segment of the U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower expected growth values. Index figures do not reflect deductions for any fees, expenses, or taxes. Investors cannot invest directly in an index.

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