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 Ryan Specialty Holdings, Inc. (NYSE:RYAN). Ryan Specialty Holdings, Inc. (NYSE:RYAN), a specialty insurance services company that provides distribution, underwriting, product development, administration, and risk management services, contributed to the portfolio’s performance during the quarter. On July 30, 2026, Ryan Specialty Holdings, Inc. (NYSE:RYAN) closed at $44.09 per share. The one-month return of Ryan Specialty Holdings, Inc. (NYSE:RYAN) was 4.90%, and its shares lost 23.79% over the past 52 weeks. Ryan Specialty Holdings, Inc. (NYSE:RYAN) has a market capitalization of $6.02 billion.
Vulcan Value Partners stated the following regarding Ryan Specialty Holdings, Inc. (NYSE:RYAN) in its Q2 2026 investor update:
“Ryan Specialty Holdings, Inc. (NYSE:RYAN), reported 11.8% organic revenue growth during the first quarter. However, the company cut its 2026 organic revenue outlook to mid-single-digit growth from its prior outlook of high-single-digit growth. The excess and surplus (E&S) market continues to grow submissions (volumes) at robust levels, but 25% to 35% property rate declines are pressuring premium growth. For instance, in 2025 total E&S premiums grew by 8%, while submissions grew by 14%. For the first six months of 2026, California E&S premiums grew 4%, while submissions grew 23%. Florida E&S premiums declined 6%, while submissions grew 15%. Texas E&S premiums grew 5%, while submissions grew 21%. These three states report monthly stamping data and together they account for roughly 45% of the E&S market. We are encouraged to see the continued robust submission growth and we believe the rate pressure is a short-term phenomenon, not a structural issue. In late May, Ryan increased its share repurchase authorization by an additional $300MM after exhausting its first ever authorization in the first five months of 2026. In early June, five insiders bought stock on the open market including Pat Ryan, Founder & Executive Chairman, and Janice Hamilton, CFO. Ryan’s stock price was volatile during the second quarter while its value remained stable. We added to our position in Ryan early in the quarter when its price to value ratio was more attractive.”
Ryan Specialty Holdings, Inc. (NYSE:RYAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Ryan Specialty Holdings, Inc. (NYSE:RYAN) at the end of the first quarter, up from 27 in the previous quarter. While we acknowledge the risk and potential of Ryan Specialty Holdings, Inc. (NYSE:RYAN) 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 Ryan Specialty Holdings, Inc. (NYSE:RYAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ryan Specialty Holdings, Inc. (NYSE:RYAN) and shared the list of best insurance stocks to buy following Q1 earnings. 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.
