McGavock Dunbar, CFA, is Principal, Equity Analyst at Vulcan Value Partners. Mr. Dunbar joined Vulcan Value Partners in 2010. Prior to joining Vulcan Value Partners, he interned at New Capital Partners, a private equity firm headquartered in Birmingham, Alabama, while working toward his MBA at the Darden School at the University of Virginia. Before attending graduate school, Mr. Dunbar worked as an Associate in the investment banking department at Susquehanna International Group. In his time there, he trained as an Assistant Trader in Susquehanna International Group’s options market making program, then moved on to help build and launch the investment banking department. After the launch, he executed public equity offerings and merger and acquisition transactions for companies in a number of different industries including alternative energy, health care, business services, and Asian technology and consumer sectors.
In his exclusive 2,562 word interview with the Wall Street Transcript, McGavock Dunbar details his firm’s investment philosophy and top picks.
“We continue to be a privately held, majority employee-owned business. We still operate five strategies with the same basic investment philosophy. The strategies are large cap, small cap and all cap, which are more diversified strategies with 20 to 40 positions. Lastly, we have two concentrated strategies: Focus and Focus Plus, which hold between seven and 14 positions…In every strategy, we have the same investment philosophy of investing in really high-quality businesses when they’re trading at a discount to fair value.”
McGavock Dunbar is not shy about exiting from portfolio positions once they have become fully valued:
“For the most part, we have been trimming positions that are close to fair value. There is nothing wrong with the businesses; we are just recycling capital in the way that I described before. So companies like InterContinental Hotels (NYSE:IHG), SS&C Technologies (NASDAQ:SSNC), CBRE (NYSE:CBRE), O’Reilly (NASDAQ:ORLY) and Sabre (NASDAQ:SABR) are all companies that we’ve exited among large caps. But we will continue to follow these businesses.”
To see the most recent buy list from Vulcan Value Partners, read the entire 2,562 word interview in the Wall Street Transcript.
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