Latest news with #VulcanValuePartners
Forbes
25-05-2025
- Business
- Forbes
Three Fund Managers, One Truth About Investing In Chaos
20th October 1987: High-angle view of traders on the floor of New York Stock Exchange, the day the ... More Dow Jones posted a record one-day point rise, New York City. (Photo by Jim Wilson/New York Times Co./Getty Images) Today's markets are flooded with noise—AI hype, FOMO-fueled rallies, and sudden liquidity shocks. Amid the chaos, what's missing isn't more opinions, it's clarity. In this environment, the key to successful investing is not loudness but maintaining a sense of groundedness. Over the past month, I sat down with three seasoned fund managers whose strategies span the spectrum: On paper, their philosophies differ. In practice, their edge converges. Each manager thrives by doing the same thing: cutting through the noise with clarity, leaning on process over prediction, and keeping risk front and center. When markets fracture, it's not tactics that separate winners from losers; it's temperament. And in this moment, wisdom—not speed—is the most underrated asset. What unites all three fund managers isn't their investing style, it's their unshakable focus on not losing money. This principal shapes everything they do, even when it puts them at odds with market sentiment. At Vulcan Value Partners, C.T. Fitzpatrick builds portfolios around companies whose intrinsic value remains stable, even when the stock price doesn't. He patiently waits for moments of market dislocation, buying only when there's a clear margin of safety. As Fitzpatrick puts it, 'You can't compound capital you've lost.' That insight underscores why downside protection, not upside chase, drives long-term performance. At Vontobel, David Souccar and Rob Hansen lean into businesses with enduring tailwinds and resilient cash flows—companies that don't just survive market volatility but grow through it. Their discipline lies in knowing what not to own and resisting the urge to chase what works today if it compromises tomorrow. Dave Iben, meanwhile, gravitates toward tangible assets and strong balance sheets—especially in regions or sectors the market has mispriced or overlooked. His approach is deeply contrarian, but rooted. He looks for real value in real things, trusting that fundamentals eventually win. Together, these managers share a core belief: risk isn't volatility, it's permanent loss of capital. That's why their portfolios often look wrong in the short term, only to be proven right over the full cycle. And it's why they consistently outperform when others are still reeling. In investing, it's not the market that determines your outcome—it's how you behave when the market moves against you. That's where discipline separates professionals from pretenders. Discipline at Vulcan Value Partners involves persevering through market downturns. C.T. Fitzpatrick doesn't flinch when prices dip—as long as the intrinsic value remains intact, the position holds. At Vontobel, Rob Hansen and David Souccar continue to back high-quality businesses even when the narrative shifts or headlines scream otherwise. Their strategy isn't swayed by market fads or macro chatter—it's driven by fundamentals. Dave Iben, true to his contrarian roots, increases his exposure when value improves, not when price momentum builds. For him, falling prices signal opportunity—not danger. It's difficult to maintain this kind of patience. 'We're not in the prediction game. We're in the patience game,' says Rob Hansen. It's a simple philosophy but incredibly difficult to execute, especially in volatile environments where panic and crowd psychology dominate. And yet, that's precisely what makes these managers exceptional. They don't chase. They don't flinch. They stick. Over time, it's this kind of unshakable discipline—built into their investment DNA—that transforms ordinary returns into extraordinary ones. Venn For The Three Profiled Managers Though their strategies differ—deep value, quality growth, and intrinsic value—these three managers share a common foundation. At the intersection lies what truly drives long-term success: discipline, capital preservation, process over prediction, patience, and a commitment to compounding. It's not the label that matters, it's the mindset. That shared core is where the real edge lives. What sets these managers apart isn't just their knowledge, it's the structure around them. Teams, frameworks, and decades of experience help them stay disciplined when it matters most. For most investors, especially those managing multiple demands, that kind of consistency is difficult to build alone. The pressure to react, to achieve something, is relentless. That's a big part of why I started my firm, The Edge. We focus on catalyst-driven special situations—like spinoffs, restructurings, and insider buying—because those are moments when something real is changing inside a company, even if the market hasn't noticed yet. That's where patience and process pay off. Our job is to assist investors in distinguishing early turning points from the noise. We do this not by guessing cycles, but by understanding when the fundamentals are shifting. Dave Iben digs where others don't. Vontobel waits while others react. Vulcan redefines investing value on its terms. Their portfolios may look different across geographies, sectors, and holdings, but they're all anchored by the same foundation: clarity of thought, conviction in process, and discipline under pressure. They know what they own, why they own it, and when to act. That same edge, clarity inside complexity—is precisely what my firm has been providing for nearly 20 years. If you are a fund manager investing, let's talk.
Yahoo
15-04-2025
- Business
- Yahoo
Here's Why Vulcan Value Partners Purchased TPG (TPG)
Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies' management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund's best picks in 2025, please check its top five holdings. In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as TPG Inc. (NASDAQ:TPG). Based in Fort Worth, Texas, TPG Inc. (NASDAQ:TPG) is an alternative asset manager. The one-month return of TPG Inc. (NASDAQ:TPG) was -9.51%, and its shares gained 4.34% of their value over the last 52 weeks. On April 14, 2025, TPG Inc. (NASDAQ:TPG) stock closed at $44.52 per share with a market capitalization of $16.449 billion. Vulcan Value Partners stated the following regarding TPG Inc. (NASDAQ:TPG) in its Q1 2025 investor letter: "We purchased three positions during the quarter: Medpace Holdings Inc., Stanley Black & Decker, and TPG Inc. (NASDAQ:TPG). TPG is an alternative asset manager with a great reputation and proven track record. The alternative asset manager industry benefits from long-term capital, which leads to annuity-like fee streams. In addition, the industry continues to enjoy tailwinds from increasing capital flows into private markets. We have followed TPG since their IPO in 2022 and have been impressed with their execution. We expect TPG to continue to expand their market share in a growing industry, and we expect fundraising, fee revenue, and fee earnings to accelerate. TPG is in a great position to fundraise as the company consistently returns capital to LPs. Many in the industry struggle to return funds, and this differentiates TPG." A successful businessman shaking hands with a client in a modern office building, celebrating a successful financial transaction. TPG Inc. (NASDAQ:TPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held TPG Inc. (NASDAQ:TPG) at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the potential of TPG Inc. (NASDAQ:TPG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered TPG Inc. (NASDAQ:TPG) in another article, where we shared TimesSquare Capital Management U.S. Focus Growth Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Here's Why Skyworks Solutions (SWKS) Lost Market Share in Q1
Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies' management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund's best picks in 2025, please check its top five holdings. In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as Skyworks Solutions, Inc. (NASDAQ:SWKS). Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures proprietary semiconductor products. The one-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was -18.57%, and its shares lost 41.70% of their value over the last 52 weeks. On April 14, 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $57.72 per share with a market capitalization of $8.864 billion. Vulcan Value Partners stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q1 2025 investor letter: "Skyworks Solutions, Inc. (NASDAQ:SWKS) is a leader in radio frequency (RF) systems primarily for mobile phones, wireless infrastructure, aerospace and defense, internet of things, and various other applications. Their components are mission critical and support key network technologies, including cellular, WiFi, GPS, and Bluetooth connectivity. Only a handful of companies are able to design and manufacture high-end RF components, making them important long-term partners to their customers. While results can be cyclical, Skyworks has maintained and grown its market share over time. Recently, Skyworks lost market share to a competitor which negatively affected our value and caused us to reevaluate Skyworks's competitive position. While Skyworks's moat is not as strong as we had originally believed, it remains one of the leading companies in a consolidating industry with high barriers to entry." A technician using a specialized tool to mount a wireless analog system on chip. Skyworks Solutions, Inc. (NASDAQ:SWKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Skyworks Solutions, Inc. (NASDAQ:SWKS) at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the potential of Skyworks Solutions, Inc. (NASDAQ:SWKS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Skyworks Solutions, Inc. (NASDAQ:SWKS) in another article, where we shared the list of best dividend stocks in the tech sector. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
15-04-2025
- Business
- Yahoo
Is Stanley Black & Decker (SWK) a Fundamentally Strong Business?
Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies' management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund's best picks in 2025, please check its top five holdings. In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as Stanley Black & Decker, Inc. (NYSE:SWK). Stanley Black & Decker, Inc. (NYSE:SWK) offers hand tools, power tools, outdoor products, and related accessories. The one-month return of Stanley Black & Decker, Inc. (NYSE:SWK) was -26.09%, and its shares lost 33.36% of their value over the last 52 weeks. On April 14, 2025, Stanley Black & Decker, Inc. (NYSE:SWK) stock closed at $60.10 per share with a market capitalization of $9.288 billion. Vulcan Value Partners stated the following regarding Stanley Black & Decker, Inc. (NYSE:SWK) in its Q1 2025 investor letter: "We purchased three positions during the quarter: Medpace Holdings Inc., Stanley Black & Decker, Inc. (NYSE:SWK), and TPG Inc. Stanley Black & Decker is a manufacturer of tools and industrial fastening products. Brands include DEWALT, Black & Decker, Craftsman, Stanley, Lenox, Cub Cadet, and Troy-Bilt. Its Tools and Storage segment makes up 90% of company revenue which includes power tools, hand tools, and outdoor equipment. The remaining 10% comes from its Engineered Fastening segment, which includes fasteners, rivets & welding equipment for the automotive, aerospace and industrial markets. The company has strong brands, high market share, and global scale. Stanley Black & Decker's earnings have been under pressure for the last several years due to Covid related supply chain issues and difficulty integrating acquisitions. More recently, higher interest rates have depressed housing demand, which in turn has reduced demand for its core tools business. Going forward, we expect the company's cost restructuring plan to underpin strong earnings growth. In addition, the company's renewed focus on investing in organic growth gives us confidence that the company has a long runway to deliver more consistent earnings growth. Recent announcements about tariffs could slow the company's progress but it does not change our fundamental investment case." A toolbox filled with an array of different tools, representing the professional products of the company. Stanley Black & Decker, Inc. (NYSE:SWK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Stanley Black & Decker, Inc. (NYSE:SWK) at the end of the fourth quarter which was 29 in the previous quarter. While we acknowledge the potential of Stanley Black & Decker, Inc. (NYSE:SWK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Stanley Black & Decker, Inc. (NYSE:SWK) in another article, where we shared the list of blue-chip stocks to invest in at 52-week lows. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Here are the Reasons to Invest in Jones Lang LaSalle Incorporated (JLL)
Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies' management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund's best picks in 2025, please check its top five holdings. In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as Jones Lang LaSalle Incorporated (NYSE:JLL). Jones Lang LaSalle Incorporated (NYSE:JLL) is a commercial real estate and investment management company. The one-month return of Jones Lang LaSalle Incorporated (NYSE:JLL) was -13.29%, and its shares gained 23.60% of their value over the last 52 weeks. On April 14, 2025, Jones Lang LaSalle Incorporated (NYSE:JLL) stock closed at $215.22 per share with a market capitalization of $10.226 billion. Vulcan Value Partners stated the following regarding Jones Lang LaSalle Incorporated (NYSE:JLL) in its Q1 2025 investor letter: "We purchased one position during the quarter: Jones Lang LaSalle Incorporated (NYSE:JLL). Jones Lang LaSalle is one of the largest commercial real estate service providers in the world, serving both investors in and corporate occupiers of real estate. It provides leasing brokerage, M&A and investment advisory services, as well as property and project management services. To complement its core business, the company also owns LaSalle, one of the largest global real estate investment management businesses in the world. Jones Lang LaSalle is a secular grower in a consolidating industry, is broadly diversified by geography, asset class and line of service, and has an inherently variable cost structure that has allowed it to generate free cash flow in both good and bad times." A real estate broker discussing options with a customer using digital maps and virtual reality. Jones Lang LaSalle Incorporated (NYSE:JLL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Jones Lang LaSalle Incorporated (NYSE:JLL) at the end of the fourth quarter compared to 31 in the third quarter. While we acknowledge the potential of Jones Lang LaSalle Incorporated (NYSE:JLL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Jones Lang LaSalle Incorporated (NYSE:JLL) in another article, where we shared the list of most undervalued real estate stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
