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Vulcan Value Partners Review

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Vulcan Value Partners, LLC

Vulcan Value Partners, LLC is a financial advisor firm based in Birmingham, AL that manages more than $13 billion in client assets. It has 20 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 several CFAs, a certified public accountant (CPA) and an advisor who holds a certificate in investment performance measurement (CIPM).

What Types of Clients Does Vulcan Value Partners Accept?

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 Partners Minimum Account Size

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 in 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 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
Assets Annual Fee
First $10MM 0.80%
Next $40MM 0.70%
Above $50MM 0.60%

 

Small-Cap and All-Cap Portfolios
Assets Annual Fee
First $10MM 1.00%
Next $40MM 0.85%
Above $50MM 0.75%

 

Focus and Focus Plus Portfolios
Assets Annual Fee
First $10MM 1.50%
Next $40MM 0.95%
Above $50MM 0.75%

Each of the mutual funds that Vulcan manages pays a monthly advisory fee, in arrears. The Vulcan Value Partners Fund has a fee of 1.00% of AUM and the Vulcan Value Partners Small Cap Fund has 1.15% fee.

What to Watch Out For

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." That said, the firm still abides by fiduciary duty, legally binding it to act in your best interest at all times.

Financial planning services are nonexistent at Vulcan, as the firm specializes in investment management. If you're looking for an advisor near you that offers financial planning, try our advisor matching tool.

Disclosures

Vulcan Value Partners does not have any disclosures on its Form ADV, meaning that it has no history of regulatory issues with the SEC.

Opening an Account With Vulcan Value Partners

To open an account with Vulcan, you can call the firm at (205) 803-1582. Bill Hjorth is the main contact for general inquiries. You can also email info@vulcanvaluepartners.com for more information.

Where Is Vulcan Value Partners Located?

You can find Vulcan Value Partners’ one office at Three Protective Center, 2801 Highway 280, Suite 300 in Birmingham, Alabama.

Tips for Financial Planning

  • Looking for an advisor who offers financial planning services, or one with a lower minimum account size? Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Curious how long it will take your investments to grow? Use SmartAsset’s investment calculator to find out what you can expect from your money.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research