Overview
- Vulcan released its fourth-quarter 2025 investor letter, noting positive full-year results across strategies, including a 10.7% net return for All Cap and 7.9% for Large Cap.
- The portfolio trades at a large discount to Vulcan’s intrinsic-value estimates, with a weighted average price-to-value ratio in the mid-50s as the manager stays cautious on market valuations.
- Medpace was a major contributor after repurchasing over 8% of shares at about half of Vulcan’s estimated fair value, driving a one-day jump of more than 40% and roughly 73% gains for the year.
- Vulcan added CarMax to its All-Cap strategy, citing brand, scale and an omnichannel model as advantages despite cyclical headwinds in the used-car market and tougher competition.
- The firm reallocated capital by selling Skyworks to pursue deeper discounts, keeping exposure through Qorvo after a Skyworks bid, exiting SS&C as its margin of safety narrowed, and initiating a position in TransUnion.