Vulcan Value Partners, LLC is a financial advisor firm based in Birmingham, AL. It has a large team of financial advisors on staff. The firm provides investment advisory services to mostly high-net-worth individual clients, but it has quite a few institutional clients as well. For the most part, you'll need at least $10 million in investable assets to become a client.
This is a fee-only firm, which means that it compensation comes only from fees it charges clients; as is standard for investment advisors, Vulcan charges these fees as a percentage of clients' assets under management (AUM). Note that a fee-only firm is different from a fee-based firm, which may also earn revenue through commission-based transactions like insurance sales. By forgoing such commissions, fee-only firms like Vulvan Value Partners are able to avoid many conflicts of interest.
Vulcan Value Partners Background
Vulcan Value Partners' CEO and chief investment offier (CIO) C.T. Fitzpatrick founded the firm in 2007. He is a chartered financial analyst (CFA) and has worked in the financial services and investment industries for well over 30 years. Fitzpatrick principally owns the firm, making it an independent operation.
Outside of Fitzpatrick, the advisory team at the firm holds a number of certifications. There are certificaitons such as CFA and certified public accountant (CPA).
Vulcan Value Partners Client Types and Minimum Account Sizes
The majority of Vulcan’s clients are high-net-worth individuals, and the firm doesn't currently work with any individuals beneath that threshold. It does, however, work with a number of institutional clients, including investment companies, pooled investment vehicles, pension and profit-sharing plans, charities, municipal governments, insurance companies and other corporations.
Vulcan Value’s typical AUM minimum for managed accounts is $10 million. This amount may be negotiable on a case-by-case basis, though. If you can't meet that minimum investment amount, you might use the financial advisor matching tool to find another advisor who serves your area.
In order to invest in one of the firm's funds, a $5,000 investment is required for taxable accounts, while $500 is the minimum for a non-taxable account.
Services Offered by Vulcan Value Partners
Vulcan offers investment advisory services through managed accounts, for which it has a few different investment strategies that are chosen based on a client's personal needs. It also manages the investments for mutual funds, undertakings for collective investment in transferable securities (UCITS) and a collective investment trust (CIT).
Vulcan Value Partners Investment Philosophy
Vulcan manages individual investment portfolios according to one of five strategies:
- Large-cap: Focuses on stocks of large companies, with 20 diversified investments in total
- Small-cap: Focuses on stocks of small companies, with 20 diversified investments in total
- All-cap: Doesn't adhere to any market capitalization requirements, but still holds 20 diversified investments across multiple market sectors
- Focus: Seeks 7 to 14 equities with large market capitalizations that have compelling price-to-value ratios
- Focus plus: Also seeks 7 to 14 equities with large market capitalizations that have compelling price-to-value ratios, but uses options to buy and sell volatility
The firm and its advisors use a system of bottom-up fundamental security analysis. It seeks to invest in publicly traded companies that offer significant potential for long-term growth while keeping risk in line with the client’s goals and preferences. The firm also places emphasis on investing in companies with strong leadership.
Fees Under Vulcan Value Partners
Vulcan Value Partners charges annual fees based upon the investment strategy you choose. These fees are charged on a quarterly basis, in arrears. Fees are based on the average closing market value of your account on the last trading day of each month over the quarter.
|Large-Cap Portfolio Fees|
|Small-Cap and All-Cap Portfolio Fees|
|Focus and Focus Plus Portfolio Fees|
Each of the mutual funds that Vulcan manages pays a monthly advisory fee, in arrears, but the fee isn't listed on the firm's Form ADV.
What to Watch Out For
Vulcan Value Partners has a single disclosure on its Form ADV. This disclosure stems from a violation of Swedish Financial Supervisory Authority regulations, which Vulcan self-reported to the Swedish regulator.
Certain institutional accounts at Vulcan Value Partners have a performance-based fee included in their fee schedules. The firm states in its Form ADV that it "may have a financial incentive to favor performance-based fee accounts."
Opening an Account With Vulcan Value Partners
To open an account with Vulcan, you can call the firm over the phone. Bill Hjorth is the main contact for general inquiries. You can also email for more information.
All information is accurate as of the writing of this article.
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