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 highlighted Everest Group, Ltd. (NYSE:EG) as a material contributor. Headquartered in Hamilton, Bermuda, Everest Group, Ltd. (NYSE:EG) is a leading insurance and reinsurance products distributor. On July 30, 2026, Everest Group, Ltd. (NYSE:EG) closed at $375.36 per share, reflecting a market capitalization of $14.53 billion. Everest Group, Ltd. (NYSE:EG) posted a one-month return of 1.08%, while its shares gained 13.29% over the past 52 weeks.
Vulcan Value Partners stated the following regarding Everest Group, Ltd. (NYSE:EG) in its Q2 2026 investor update:
“Everest Group, Ltd. (NYSE:EG) is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. Insurance is an inherently cyclical business. “Hard markets” occur when premium prices are high relative to insured risks. Hard markets inevitably attract more capital to the industry, causing premium prices to fall relative to insured risks, which results in a “soft market.” Soft markets lead undisciplined underwriters to post underwriting losses, removing capital from the industry, and the cycle repeats. We entered a soft market last year.
In evaluating insurance companies, we believe that growth in tangible book value per share more closely approximates growth in intrinsic value per share than does growth in earnings per share. Compounding book value per share requires underwriting discipline. Moreover, given the cyclical nature of the business, a disciplined underwriter will have more volatile earnings in the short run than an undisciplined underwriter. Everest Group underwrites aggressively in hard markets and builds underwriting capacity during soft markets. During the most recent hard market, the company has significantly grown book value per share. We applaud Everest Group’s emphasis on growing intrinsic value per share over the long term instead of managing short-term earnings per share…” (Click here to read the full text)
Everest Group, Ltd. (NYSE:EG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held Everest Group, Ltd. (NYSE:EG) at the end of the first quarter, compared to 41 in the previous quarter. While we acknowledge the risk and potential of Everest Group, Ltd. (NYSE:EG) 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 Everest Group, Ltd. (NYSE:EG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In its Q4 2025, investor letter Vulcan Value Partners expressed its confidence in Everest Group, Ltd. (NYSE:EG), emphasizing its strong management, undervaluation and buy back programs. 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.
