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.
|Small-Cap and All-Cap Portfolios|
|Focus and Focus Plus Portfolios|
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.
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 email@example.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
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