Vulcan Value Partners Small Cap Fund (VVPSX)

Overview

The fund is designed for investors aiming for long-term capital appreciation by focusing on small-cap companies identified as undervalued yet holding a sustainable competitive advantage. It targets establishing core positions that amount to approximately 5% of its portfolio, implying an investment spread across about 20 firms from a variety of industries. This non-diversified fund also permits investment in international markets and illiquid securities, up to 30% and 15% of its net assets, respectively, diversifying its investment approach while maintaining a focused portfolio.

Products and Services

• Investment in Small-Cap Companies - The fund primarily invests in small-cap companies that are believed to be undervalued but have a sustainable competitive advantage. This strategy aims to capitalize on the growth potential of these companies before they become more broadly recognized in the market.
• Core Position Holdings - Each core position constitutes approximately 5% of the fund's portfolio, aiming for a compact portfolio of around 20 companies. This approach focuses on quality over quantity, ensuring each investment has significant potential to contribute to the fund's overall performance.
• Industry Diversification - Although the fund holds a relatively small number of companies, it spreads its investments across various industries. This diversification helps mitigate sector-specific risks and capitalizes on opportunities in different areas of the market.
• Publicly Traded Foreign Securities - Up to 30% of the fund's net assets may be invested in publicly traded securities outside of the domestic market. This allows the fund to tap into international growth opportunities and diversify across geographies.
• Illiquid Securities Investment - The fund may allocate up to 15% of its net assets to illiquid securities, which are not easily sold or exchanged for cash without a substantial price concession. This part of the portfolio can include investments in early-stage companies or in markets with lower liquidity but potentially higher returns.
• Non-Diversified Status - Despite its spread across various industries and potentially global investment reach, the fund is classified as non-diversified. This classification reflects its strategy of holding significant positions in a limited number of companies, which could lead to higher volatility but also offers the potential for substantial growth.