Overview
- Vulcan Value Partners reported net losses in Q1 2026, including -14.1% in Large Cap, -19.1% in Focus and Focus Plus, -13.5% in All-Cap, and -6.8% in Small Cap.
- The firm said AI-fueled trading is distorting prices and grouped businesses by disruption risk into software, alternative-asset managers, and firms indirectly exposed.
- Vulcan sold CoStar after calling its heavy Homes.com spending a poor use of cash and exited Diageo to improve value, while adding engine repair specialist StandardAero to its Small Cap strategy.
- The letter named seven material detractors—Ares, Ryan Specialty, Microsoft, Salesforce, UnitedHealth, Amazon, and SAP—and cited Littelfuse as the only material contributor on stronger sales and wider margins.
- As an example of perceived overreaction, Vulcan said Ares’ 31.6% first‑quarter drop overstated its software risk because most exposure is senior credit with low defaults and modest loan-to-value.