Vulcan Value Partners Small Cap Fund Institutional Class (VVISX)

Overview

The fund aims to generate long-term capital growth by focusing its investments on both small-cap and large-cap publicly traded companies. These companies are selected based on their undervaluation and their sustainable competitive advantage, as assessed by the adviser. By maintaining a portfolio that seeks to have core positions representing approximately 5% of its total portfolio, the fund theoretically aims to invest in about 20 companies across various industries, balancing risk and potential for growth. Additionally, the fund has the flexibility to invest up to 30% of its net assets in publicly traded foreign securities, allowing for international exposure, and may allocate up to 15% of its net assets in illiquid securities, offering potential for higher returns at the cost of higher risk. Despite its diversified industrial exposure, the fund is classified as non-diversified, which suggests a concentration in fewer holdings that might present a higher risk but also the possibility of higher rewards.

Products and Services

The fund offers a distinct investment approach through its targeted services:

• Long-Term Capital Appreciation: Focused on generating returns over the long run, the fund positions itself as an ideal opportunity for investors looking to benefit from growth in the value of small-cap and large-cap companies that are undervalued and have a sustainable competitive edge. This strategic focus is designed to appeal to patient investors who are in search of substantial capital growth prospects.
• Diverse Industry Exposure: By investing in approximately 20 companies across various industries, the fund aims for a balanced portfolio that mitigates sector-specific risks and capitalizes on growth opportunities in different market segments. This diversified industry exposure is fundamental to the fund’s strategy of minimizing volatility while aiming for significant returns.
• International Investment Exposure: With up to 30% of net assets allowed for investment in publicly traded foreign securities, the fund offers its investors a taste of international markets. This component of the fund’s investment strategy not only diversifies geographical risks but also opens up the potential for tapping into the growth dynamics of foreign markets.
• Illiquid Securities Investment: The fund’s capability to allocate up to 15% of its net assets in illiquid securities is an aspect that distinguishes it. This strategy might carry higher risks due to the lack of liquidity, but it also presents an opportunity for higher rewards by investing in assets that are not readily marketable. This approach indicates the fund’s balance between risk and potential for high returns.