Investment management company Vulcan Value Partners recently released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. All the strategies of Vulcan Value Partners delivered positive results in the year. The Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD, the Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD, The Focus Composite (Net) retuned 0.1% in Q4 and 7.1% YTD, Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD and the All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD. Despite overvalued markets, the firm improved its price-to-value ratios while still achieving positive returns, prioritizing safety and long-term gains over short-term performance. This situation echoes the late 1990s dot-com bubble, where hype and high valuations led to a crash, and today’s AI disruptions seem to mirror that pattern, with investors risking overpaying for promising businesses. The firm is addressing such situations by sticking to its investment discipline. For more information on the firm’s best picks in 2025, please check its top five holdings. In addition, please check the firm’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Vulcan Value Partners highlighted stocks like Everest Group, Ltd. (NYSE:EG). Vulcan Value Partners added Everest Group, Ltd. (NYSE:EG) to its Small-Cap strategy during the quarter. Headquartered in Hamilton, Bermuda, Everest Group, Ltd. (NYSE:EG) is a leading insurance and reinsurance products distributor. Everest Group, Ltd. (NYSE:EG) shares traded between $302.44 and $372.00 over the past 52 weeks. On January 26, 2026, Everest Group, Ltd. (NYSE:EG) stock closed at $327.10 per share. One-month return of Everest Group, Ltd. (NYSE:EG) was -4.15%, and its shares gained 7.28% of their value over the last three months. Everest Group, Ltd. (NYSE:EG) has a market capitalization of $3.101 billion.
Vulcan Value Partners stated the following regarding Everest Group, Ltd. (NYSE:EG) in its fourth quarter 2025 investor letter:
“In many ways we have come full circle with Everest Group, Ltd. (NYSE:EG) – it is an old friend. We owned Everest RE, now called Everest Group, for 11 years in our Small Cap strategy during which it grew into a large cap, and we purchased it in our Large Cap program as well. We sold it out of both portfolios in 2020 to reallocate capital to companies with larger margins of safety. In the third quarter of 2023, we repurchased Everest Group in our Large Cap strategy. Despite steady value per share growth, Everest Group’s stock price declined in 2024 and 2025 so we were able to buy it again in our Small Cap strategy. Everest Group is one of the top reinsurance companies in the world. They also have a meaningful primary insurance segment. Everest Group’s quarterly numbers can be volatile, but over a cycle the company produces positive underwriting results. An underwriting loss is the cost of funds from premiums paid to an insurance company. An underwriting profit means that those funds do not have a cost. In fact, it means the insurance company is being paid to keep your money. They are able to invest these funds and earn investment income. Insurance companies that produce underwriting profits should trade at a meaningful premium to tangible book value. Everest Group, on the other hand, trades at a discount to tangible book value. The company realizes that its shares are significantly undervalued and is using its free cash flow to repurchase stock which positively impacts our value per share growth. We are thrilled to have the opportunity to own this well-managed leading insurance company again.”
Everest Group, Ltd. (NYSE:EG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 34 hedge fund portfolios held Everest Group, Ltd. (NYSE:EG) at the end of the third quarter, compared to 38 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 another article, we covered Everest Group, Ltd. (NYSE:EG) and shared the list of best cheap stocks to buy for beginners. In addition, please check out our hedge fund investor letters Q4 2025 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.
