Vulcan Value Partners’ Investment Journey with Everest Group Ltd. (EG)

Core Insights - Vulcan Value Partners reported positive results across all its investment strategies for Q4 2025, with notable year-to-date returns despite overvalued markets [1] - The firm emphasizes a disciplined investment approach, prioritizing safety and long-term gains over short-term performance, drawing parallels to the late 1990s dot-com bubble [1] Investment Strategies Performance - Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD - Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD - Focus Composite (Net) returned 0.1% in Q4 and 7.1% YTD - Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD - All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD [1] Company Highlight: Everest Group, Ltd. - Everest Group, Ltd. (NYSE:EG) was added to Vulcan's Small-Cap strategy during Q4 2025, with a market capitalization of $3.101 billion [2] - The stock traded between $302.44 and $372.00 over the past 52 weeks, closing at $327.10 on January 26, 2026 [2] - The one-month return for Everest Group was -4.15%, while it gained 7.28% over the last three months [2] Historical Context and Valuation - Vulcan Value Partners has a long history with Everest Group, having previously owned it for 11 years before selling in 2020 to focus on companies with larger margins of safety [3] - The firm repurchased Everest Group in Q3 2023 for its Large Cap strategy and again in its Small Cap strategy due to its undervaluation [3] - Despite steady value per share growth, Everest Group's stock price declined in 2024 and 2025, allowing for repurchase at a discount to tangible book value [3] - The company is utilizing its free cash flow for stock repurchases, positively impacting value per share growth [3]