Here’s Why Vulcan Value Partners Purchased TPG (TPG)

3 months ago 32

Soumya Eswaran

Tue, Apr 15, 2025, 6:05 AM 3 min read

Investment absorption company Vulcan Value Partners recently released its first-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. The archetypal 4th experienced the instrumentality of volatility. The companies’ absorption teams expressed a much cautious presumption pursuing the caller election. Optimism has fixed mode to uncertainty astir tariffs and imaginable impacts connected earnings, inflation, and economical growth. In the quarter, the Large Cap Composite returned -2.1% nett of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For much accusation connected the fund’s champion picks successful 2025, delight cheque its apical 5 holdings.

In its archetypal 4th 2025 capitalist letter, Vulcan Value Partners emphasized stocks specified arsenic TPG Inc. (NASDAQ:TPG). Based successful Fort Worth, Texas, TPG Inc. (NASDAQ:TPG) is an alternate plus manager. The one-month instrumentality of TPG Inc. (NASDAQ:TPG) was -9.51%, and its shares gained 4.34% of their worth implicit the past 52 weeks. On April 14, 2025, TPG Inc. (NASDAQ:TPG) banal closed astatine $44.52 per stock with a marketplace capitalization of $16.449 billion.

Vulcan Value Partners stated the pursuing regarding TPG Inc. (NASDAQ:TPG) successful its Q1 2025 capitalist letter:

"We purchased 3 positions during the quarter: Medpace Holdings Inc., Stanley Black & Decker, and TPG Inc. (NASDAQ:TPG). TPG is an alternate plus manager with a large estimation and proven way record. The alternate plus manager manufacture benefits from semipermanent capital, which leads to annuity-like interest streams. In addition, the manufacture continues to bask tailwinds from expanding superior flows into backstage markets. We person followed TPG since their IPO successful 2022 and person been impressed with their execution. We expect TPG to proceed to grow their marketplace stock successful a increasing industry, and we expect fundraising, interest revenue, and interest net to accelerate. TPG is successful a large presumption to fundraise arsenic the institution consistently returns superior to LPs. Many successful the manufacture conflict to instrumentality funds, and this differentiates TPG."

A palmy businessman shaking hands with a lawsuit successful a modern bureau building, celebrating a palmy fiscal transaction.

TPG Inc. (NASDAQ:TPG) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge money portfolios held TPG Inc. (NASDAQ:TPG) astatine the extremity of the 4th fourth which was 20 successful the erstwhile quarter. While we admit the imaginable of TPG Inc. (NASDAQ:TPG) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.