Investment management company Vulcan Value Partners recently released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Vulcan Value Partners prioritizes long-term returns and lower risk over short-term performance. In the quarter, the Large Cap Composite (Net) returned 9.5%, the Small Cap Composite (Net) returned 13.3%, the Focus Composite (Net) returned 10.4%, the Focus Plus Composite (Net) returned 10.5%, and the All-Cap Composite (Net) returned 9.0%. The firm reported strong compounding across its strategies in Q2 2026. Management highlighted that their exceptional holdings remain deeply undervalued relative to “what is working” in the market, viewing this as an excellent opportunity for patient investors. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Vulcan Value Partners emphasized Equifax Inc. (NYSE:EFX), a company specializing in data, analytics, and technology through its Workforce Solutions, U.S. Information Solutions (USIS), and International divisions. During the quarter, Vulcan Value Partners added Equifax Inc. (NYSE:EFX) to its large‑cap and all‑cap strategies. On July 29, 2026, Equifax Inc. (NYSE:EFX) closed at $187.05 per share, reflecting a market capitalization of $21.98 billion. Equifax Inc. (NYSE:EFX) posted a one-month return of 8.71%, while its shares lost 22.14% over the past 52 weeks.
Vulcan Value Partners stated the following regarding Equifax Inc. (NYSE:EFX) in its Q2 2026 investor update:
“We purchased one new position during the quarter: Equifax Inc. (NYSE:EFX). Equifax is one of the three major credit bureaus in the U.S. Lending institutions self-report their consumer lending and payment data to Equifax. That data is then aggregated as a credit report and credit score and sold back to lenders to evaluate the creditworthiness of borrowers. Credit bureau data is proprietary, sensitive, and highly regulated. The barriers to entry are nearly insurmountable for a new entrant. Competition between the three credit bureaus is rational. In addition to Equifax’s legacy credit bureau business, its Workforce Solutions segment makes up over 60% of EBIT. Employers and major payroll providers send Equifax their payroll and employment data. In return, Equifax handles the administrative burden of employment and income verification requests from lenders, potential employers, and government agencies. Equifax has over 210 million active work records making up 70% of non farm payrolls. Their database is massively larger than their next biggest competitor’s. Anyone looking to verify this information will almost always choose the largest, most up-to-date database, and employers and payroll providers don’t want to send this sensitive information to more than one company due to cybersecurity risk. The Workforce Solutions segment has grown double-digits organically over the last 10 years, and management projects it to grow low to mid teens through 2030, all at a margin above the company average. We have followed Equifax for many years, and it is rarely cheap. We believe the stock has traded down due to a weak mortgage market and perceived AI risk. Despite U.S. mortgage volumes being 50% below pre-COVID levels, we believe the stock is discounted even without any recovery in mortgage volumes. As for AI risk, 90% of Equifax’s revenue comes from proprietary data that is impossible to obtain without it being contributed directly by lenders and employers. We do not believe AI poses any threat to Equifax’s business. We are pleased to be shareholders.”
Equifax Inc. (NYSE:EFX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held Equifax Inc. (NYSE:EFX) at the end of the first quarter, compared to 60 in the previous quarter. While we acknowledge the risk and potential of Equifax Inc. (NYSE:EFX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Equifax Inc. (NYSE:EFX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Equifax Inc. (NYSE:EFX) and shared Jensen Quality Mid Cap Fund’s insights on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
