Value Investing



Strategy Profile

Strategy Characteristics

Number of Holdings
7 - 14
Russell 1000 Value Index
S&P 500 Index

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.


Portfolio Construction

The portfolio represents a subset of our MVP list and is a highly concentrated strategy that typically holds between 7 to 14 companies. It exists to allow us to overweight capital in our most attractive portfolio companies. The weight of a security in the portfolio is determined by valuation, with more discounted names receiving a higher weight and less discounted names receiving a smaller weight. A core position would be 8% to 10%. 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





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 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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