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Value Investing

Focus Plus

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Strategy Profile

Strategy Characteristics

Number of Holdings
7 - 14
Style
Value
Benchmarks
Russell 1000 Value Index
S&P 500 Index
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Strategy Summary

Invests in companies with larger market capitalizations. Subject to price, any publicly traded company with above average economics that is not small (as defined by the Russell 2000 Index) would be a potential investment in this portfolio. Typically, we will hold 7 to 14 companies. These are great (as opposed to only good) businesses selling at extremely compelling price to value ratios. This portfolio uses options to further reduce risk. We do not employ any leverage. Instead, we use options to sell volatility when it is expensive and buy volatility when it is cheap. We sell options which give us the right to buy or sell stock in companies at prices that we would buy or sell anyway. We are compensated with option premiums. Generally, we use options instead of buying stock directly when we can earn double digit returns from selling options. In rare circumstances we will purchase options. Always, the goal is to reduce risk.

04

Investment Philosophy

One team. One philosophy. One process.

Evaluating opportunities is a process; one we undertake with discipline and intentionality. Our primary objective is to minimize risk. We have always believed that by concentrating on not losing money, making money will take care of itself. We also analyze a company’s competitive strengths to ensure it meets our long-term horizon of five years. Finally, we assess the human element, understanding that we’re investing in real businesses run by real people facing real issues. We’re not traders or speculators. We’re long-term owners in a collection of superior business enterprises.

Learn more about our Investment Philosophy

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Vehicles

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Disclosures

Vulcan Value Partners, LLC is an investment adviser registered with the Securities and Exchange Commission under the Investment Adviser Act of 1940.

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 S&P 500 Index is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. Investors cannot invest directly in an index.

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