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 CBRE Group, Inc. (NYSE:CBRE). Vulcan Value Partners exited its holdings in CBRE Group, Inc. (NYSE:CBRE) from its Focus Strategy during the quarter. CBRE Group, Inc. (NYSE:CBRE) is a commercial real estate services and investment company. CBRE Group, Inc. (NYSE:CBRE) shares traded between $108.45 and $173.05 over the past 52 weeks. On January 26, 2026, CBRE Group, Inc. (NYSE:CBRE) stock closed at $170.31 per share. One-month return of CBRE Group, Inc. (NYSE:CBRE) was 4.29%, and its shares gained 6.82% of their value over the last three months. CBRE Group, Inc. (NYSE:CBRE) has a market capitalization of $50.68 billion.
Vulcan Value Partners stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its fourth quarter 2025 investor letter:
“CBRE Group, Inc. (NYSE:CBRE) was an excellent investment for us. As the world’s largest commercial real estate services company, CBRE has a market-leading position in leasing and property sales brokerage. It also has a large and growing recurring business, which includes facilities management, project management, and investment management. These businesses provide earnings stability during cyclical downturns in commercial real estate transactions. CBRE also benefits from robust diversification across asset classes, including office, industrial & logistics, life sciences, retail, and multifamily. We purchased shares in June 2022 at peak concern regarding the future of the office due to remote work, rising interest rates, and a weakening economy. Since then, less-transactional segments have continued to grow strongly, and leasing has largely recovered. While property sales remain below pre-COVID levels, CBRE expects its Core EPS to achieve a new record in 2025. CBRE’s value grew over the course of our ownership, but its share price rose faster, and we reallocated capital to more discounted businesses.”
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