Vulcan Value Partners Small Cap
Invests in companies with smaller market capitalizations. Subject to price, any publicly traded company with above average economics that is not large (as defined by the Russell 1000 Index) would be a potential investment in this portfolio. A core position is 5% so that theoretically we would hold 20 names diversified across various industries. It is very rare that enough companies are sufficiently discounted to warrant this level of concentration, so concentration will vary with the price to value ratio. We will invest in positions as small as 1% when price to value ratios are higher. We will not invest in any business that is trading above our estimate of fair value.
Performance (As of March 31, 2020)
|Investment Strategy||Inception Date||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception|
|Small Cap Composite (Gross)||03/30/07||-41.8%||-30.8%||-8.3%||-2.0%||7.8%||6.7%|
|Small Cap Composite (Net)||-42.0%||-31.4%||-9.1%||-2.9%||6.9%||5.7%|
|Russell 2000 Value Index||-35.7%||-29.6%||-9.5%||-2.4%||4.8%||2.3%|
|Russell 2000 Index||-30.6%||-24.0%||-4.6%||-0.3%||6.9%||4.3%|
|Investment Strategy||Small Cap Composite (Gross)|
|Annualized: 1 Year||-30.8%|
|Annualized: 3 Year||-8.3%|
|Annualized: 5 Year||-2.0%|
|Annualized: 10 Year||7.8%|
|Investment Strategy||Small Cap Composite (Net)|
|Annualized: 1 Year||-31.4%|
|Annualized: 3 Year||-9.1%|
|Annualized: 5 Year||-2.9%|
|Annualized: 10 Year||6.9%|
|Investment Strategy||Russell 2000 Value Index|
|Annualized: 1 Year||-29.6%|
|Annualized: 3 Year||-9.5%|
|Annualized: 5 Year||-2.4%|
|Annualized: 10 Year||4.8%|
|Investment Strategy||Russell 2000 Index|
|Annualized: 1 Year||-24.0%|
|Annualized: 3 Year||-4.6%|
|Annualized: 5 Year||-0.3%|
|Annualized: 10 Year||6.9%|
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 performance presented is for our Small Cap Composite. The model 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 of fees 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 II of our ADV.
There may be market or economic conditions which affect our performance, or that of our relevant benchmarks. 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.
The Russell 2000® Index includes the 2000 firms from the Russell 3000® Index with the smallest market capitalizations. The Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Index figures do not reflect deductions for any fees, expenses, or taxes. Investors cannot invest directly in an index.
Vulcan Value Partners, LLC is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Vulcan Value Partners focus on long term capital appreciation; targeting securities purchases that we believe have a substantial margin of safety in terms of value over price and limiting our investments to companies that we believe have sustainable competitive advantages that will allow them to earn superior returns on capital. Vulcan Value Partners claims compliance with the Global Investment Performance Standards (GIPS®). To receive a complete list and description of Vulcan Value Partners’ composites and a presentation that adheres to the GIPS standards, please contact Ashley Morris at 205.803.1582 or write Vulcan Value Partners, Three Protective Center, 2801 Highway 280 South, Suite 300, Birmingham AL, 35223.
Small Cap Composite Information: This portfolio strategy invests in companies with smaller market capitalizations. Subject to price, any publicly traded company with above average economics that is not “large” would be a potential investment in this portfolio. While we do not have any defined cutoffs we use the Russell 2000 as a guide to define small cap, and any small publicly traded company with reasonable economics would be a potential investment in this portfolio. A core position is 5% so that theoretically our clients would hold 20 names diversified across various industries. It is very rare that enough companies are sufficiently discounted to warrant this level of concentration, so concentration will vary with the price to value ratio. We will invest client assets in positions as small as 1% when price to value ratios are higher. We will not invest client assets in any business that is trading above our estimate of fair value. The composite benchmark is the Russell 2000 Index which measures the performance of the small-cap segment of the U.S. Equity universe and includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. New accounts that fit the composite definition are added at the beginning of the first full calendar month for which the account is under management. Closed account data is included in the composite as mandated by the standards in order to eliminate a survivorship bias. The composite was created on March 31, 2007. Portfolios below the minimum asset level of $50,000 are not included in the composite. In the course of reviewing historical information, we identified that 2014 dispersion was presented for the fourth quarter instead of the annual period. As a result, annual dispersion for 2014 has been updated from 0.58% to 1.26% to reflect dispersion for the relevant period. Additional information regarding this change is available upon request.
All returns are expressed in US dollars.