Vulcan Value Partners Focus Plus Strategy
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.
- Number of Holdings
- Inception Date
- Primary Benchmark
- Russell 1000 Value Index
- Active Share*
- Upside Capture*
- Downside Capture*
as of 06/30/2022*Information provided is supplemental information for the Focus Plus Composite. Statistics computed since strategy inception against the Russell 1000 Value Index.
C.T. Fitzpatrick, CFA
Founder, Chief Executive Officer, Chief Investment Officer
McGavock Dunbar, CFA
Principal, Director of Research
F. Hampton McFadden Jr, CFA
Stephen Simmons, CFA
* Peer ranking information sourced from eVestment as of July 20, 2022 using Vulcan Value Partners Large Cap, Focus, and Focus Plus Composites versus peer group of US Large Cap Value Equity Universe, Vulcan Value Partners Small Cap Composite versus peer group of US Small Cap Value Equity Universe, and Vulcan Value Partners All Cap Composite versus peer group of US All Cap Value Equity Universe since inception ending June 30, 2022.
- Average Market Cap
- Median Market Cap
- Name Turnover
- Free Cash Flow Yield
- Dividend Yield
- P/E Ratio
as of 06/30/2022
* 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 July 7, 2022 as of June 30, 2022.
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.
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.
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.
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