01

Managed Account

Focus Plus

Vulcan Value Partners Focus Plus Strategy

02

Summary

  • Invests in companies with larger market capitalizations. Subject to price, any publicly traded company with what we believe are 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. We can use options in this portfolio in order to further reduce risk. We do not employ any leverage. Instead, we use options to sell volatility when we believe it is expensive and buy volatility when we believe it is cheap. We sell options which give us the right to buy or sell stock in companies at prices that we would most likely buy or sell anyway. In turn, we are compensated with option premiums. Generally, we use options instead of buying stock directly when we believe we can earn double digit returns from selling options. In rare circumstances we will purchase options. Always, our goal is to reduce risk.

  • Composite Characteristics

    Number of Holdings
    12
    Inception Date
    3/31/2007
    Primary Benchmark
    Russell 1000 Value
    Active Share*
    98.2%
    Upside Capture*
    116.6
    Downside Capture*
    100.7
    Annual Turnover
    17.8%
    Name Turnover
    16.2%

    as of 12/31/2022

    *Information provided is supplemental information for Vulcan’s Focus Plus Composite. Active share, upside capture and downside capture are computed since composite inception against the Russell 1000 Value Index and were sourced from eVestment on January 11, 2023 as of December 31, 2022. Turnover and name turnover are provided on a trailing 12 months basis.

Portfolio Team

C.T. Fitzpatrick, CFA

Founder, Chairman, Chief Investment Officer, Portfolio Manager

McGavock Dunbar, CFA

Principal, Director of Research, Portfolio Manager

F. Hampton McFadden Jr, CFA

Portfolio Manager

Stephen Simmons, CFA

Principal, Portfolio Manager

Colin Casey

Principal, Portfolio Manager

Performance

 
YTD
1YR
3YR
5YR
10YR
Since
Inception
Focus Plus Composite (Gross)
-29.0%
-29.0%
5.2%
12.5%
13.6%
11.1%
Focus Plus Composite (Net)
-29.2%
-29.2%
4.3%
11.5%
12.6%
10.0%
Russell 1000 Value
-7.5%
-7.5%
6.0%
6.7%
10.3%
6.5%
S&P 500
-18.1%
-18.1%
7.7%
9.4%
12.6%
8.7%
Investment Strategy
Focus Plus Composite (Gross)
Year to Date
-29.0%
Annualized: 1 Year
-29.0%
Annualized: 3 Year
5.2%
Annualized: 5 Year
12.5%
Annualized: 10 Year
13.6%
Since Inception
11.1%
Investment Strategy
Focus Plus Composite (Net)
Year to Date
-29.2%
Annualized: 1 Year
-29.2%
Annualized: 3 Year
4.3%
Annualized: 5 Year
11.5%
Annualized: 10 Year
12.6%
Since Inception
10.0%
Investment Strategy
Russell 1000 Value
Year to Date
-7.5%
Annualized: 1 Year
-7.5%
Annualized: 3 Year
6.0%
Annualized: 5 Year
6.7%
Annualized: 10 Year
10.3%
Since Inception
6.5%
Investment Strategy
S&P 500
Year to Date
-18.1%
Annualized: 1 Year
-18.1%
Annualized: 3 Year
7.7%
Annualized: 5 Year
9.4%
Annualized: 10 Year
12.6%
Since Inception
8.7%

Portfolio Characteristics

Average Market Cap
$405.9B
Median Market Cap
$111.5B
Free Cash Flow Yield
4.2%
Dividend Yield
1.0%
ROE
27.9%
P/E Ratio
21.1x

as of 12/31/2022

* Information provided is supplemental information for Focus Plus Composite. All information is provided on a trailing 12 months basis unless otherwise indicated. Free Cash Flow Yield is free cash flow divided by market price. P/FCF is market price divided by free cash flow. Characteristics run in FactSet on 1/9/2023 as of 12/31/2022.

03

Investment Philosophy

One team. One philosophy. One process.

Evaluating investment 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 should take care of itself. We also analyze a company’s competitive strengths to ensure it meets our intended investment horizon of five years. Finally, we assess the human element, understanding that we are investing in real businesses run by real people facing real issues. We are not traders or speculators. We want to be long-term owners in a collection of superior business enterprises.

Learn more about our Investment Philosophy

04

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.

Vulcan claims compliance with the Global Investment Performance Standards (GIPS). This presentation is supplemental information to the fully compliant composite performance disclosure available here.

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. Index figures do not reflect deductions for any fees, expenses, or taxes. Investors cannot invest directly in an index.

Holdings are subject to change. The top holdings, as well as other data, are as of the period indicated and should not be considered a recommendation to purchase, hold, or sell any particular security. There is no assurance that any of the securities noted will remain in a portfolio at the time you receive this fact sheet. Actual holding and percentage allocation in individual client portfolios may vary and are subject to change. It should not be assumed that any of the holdings discussed were or will prove to be profitable or that the investment recommendations or decisions we make in the future will be profitable. A list of all securities held in this portfolio in the prior year is available upon request.

The performance presented is for our Focus Composite. The composite portfolio performance figures reflect the deduction of brokerage or other commissions and the reinvestment of dividends and capital gains. Past performance is no guarantee of future results, and we may not achieve our return goal. We have presented returns gross and net of fees. Gross of fees returns are calculated gross of management and custodial fees and net of transaction costs. Net of fees returns are calculated net of management fees and transaction costs and gross of custodian fees, taken at the highest applicable fee. The performance figures do not reflect the deduction of any taxes an investor might pay on distributions or redemptions. Our standard fees are presented in Part 2 of our ADV. There may be market or economic conditions which affect our performance or that of our relevant benchmarks. Market conditions can vary widely over time and can result in a loss in portfolio value. Vulcan buys concentrated positions for our portfolios, averaging 5% in our model portfolios, which may make our performance more volatile than that of our benchmark indices, and our performance may diverge from an index, positively or negatively, as a result. Our focus is on long term capital appreciation, so our clients should consider at least a five year time horizon for an investment with Vulcan.

Stay in Touch

Sign up to receive Vulcan
related news and updates.