Value Line Larger Companies Focused Fund
| Value Line Larger Companies Focused Fund | |
|---|---|
| Investor Class | VALLX |
| Institutional Class | VLLIX |
| AUM | $484M |
Cindy Starke Senior Portfolio Manager
* EULAV Asset Management (the “Adviser”) has contractually agreed to waive through June 30, 2020 certain Fund-wide fees and further assume certain Fund-wide expenses to the extent necessary to limit such expenses (excluding brokerage commissions, interest, taxes, and certain non-routine Fund-wide expenses) to 0.90% of the average daily net assets of each class (the “Fund-level Expense Limitation”). In addition, the Adviser and EULAV Securities LLC (the “Distributor”) have contractually agreed to permanently waive certain class-specific fees and assume certain class-specific expenses so that the Institutional Class bears its class-specific fees and expenses at the same percentage of its average daily net assets as the Investor Class’s class-specific fees and expenses (excluding 12b-1 fees and certain non-routine class-specific expenses) (the “Class Expense Limitation,” together with the Fund-level Expense Limitation, the “Expense Limitations”). Each Expense Limitation can be terminated with the agreement of the Fund’s Board. The Adviser and the Distributor may subsequently recover from a class any fees waived and expenses assumed within three years from the month in which the waiver or assumption occurred for such class, to the extent its expense ratio is less than the applicable Expense Limitation or, if lower, the expense limitation in effect when the waiver or assumption occurred. The Fund’s performance would be lower in the absence of such waivers.
As of 06/30/25, the Fund’s Top 10 Holdings were as follows:
NVIDIA Corp (8.41%),
Meta Platforms Inc Class A (7.10%),
Robinhood Markets Inc Class A (6.19%),
AppLovin Corp Ordinary Shares - Class A (5.91%),
Uber Technologies Inc (4.33%),
Alphabet Inc Class A (4.30%),
Coinbase Global Inc Ordinary Shares - Class A (4.10%),
Netflix Inc (3.95%),
Advanced Micro Devices Inc (3.83%),
Amazon.com Inc (3.61%)
3-Yr Average Projected Annual Sales Growth Rate is the year-over-year average growth rate of holdings based on analysts’ consensus revenue
estimates of holdings.
3-5 Yr Average Estimated Forward Earnings Growth Rate is the year-over-year average growth rate based on analysts’
consensus EPS (earnings per share) estimates. If EPS estimates are available for 5 years forward, it is an average of 5 years; otherwise, it is an avg of 3 years forward EPS estimates.
Morningstar™ Categories based on Investor class shares.
The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at vlfunds.com or by calling 1-800-243-2729.
You should carefully consider investment objectives, risks, charges and expenses of Value Line Funds before investing. This and other information can be found in the fund's prospectus and summary prospectus, which can be obtained free of charge from your investment representative, by calling 800.243.2729, or by clicking on the applicable fund at www.vlfunds.com. Please read it carefully before you invest or send money. Value Line Funds are distributed by EULAV Securities LLC. Past performance is no guarantee of future results.
Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.
The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Investment results and the principal value of an investment will vary.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
VLEOX (3 Year / 4 stars / 512 funds; 5 Year / 4 stars / 496 funds; 10 Year / 4 stars / 390 funds; )
VLIFX (3 Year / 3 stars / 476 funds; 5 Year / 5 stars / 444 funds; 10 Year / 5 stars / 368 funds; )
VALLX (3 Year / 5 stars / 1024 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 766 funds; )
VALSX (3 Year / 1 stars / 1024 funds; 5 Year / 2 stars / 954 funds; 10 Year / 2 stars / 766 funds; )
VLAAX (3 Year / 2 stars / 466 funds; 5 Year / 1 stars / 439 funds; 10 Year / 3 stars / 363 funds; )
VALIX (3 Year / 5 stars / 466 funds; 5 Year / 3 stars / 439 funds; 10 Year / 5 stars / 363 funds; )
VAGIX (3 Year / 1 stars / 430 funds; 5 Year / 2 stars / 382 funds; 10 Year / 2 stars / 288 funds; )
Source: Morningstar Direct
How did the Fund perform in the second quarter of 2025 relative to its benchmark and the Morningstar Large Growth Category?
For the three months ended June 30, 2025, the Fund’s return of 30.77% surpassed the Morningstar Large Growth Category average return of 17.09% by over 1,300 basis points and nearly tripled the S&P 500 Index’s return of 10.94%. We are also pleased to report that the Fund’s return ranked in the top 5% among Morningstar Large Growth funds for the 1 and 3-year periods ended June 30, 2025.
Please visit the Fund’s performance page for complete performance information.
Source: Morningstar as of 6/30/25
What drove the Fund’s Strong performance relative to the S&P 500 Index in Q2?
The Fund’s outperformance in the second quarter was driven primarily by stock selection. With respect to sectors, the Fund’s two largest contributing sectors were Financials and Information Technology (IT).
The Fund’s Financials holdings gained 70%, more than 10X the Index’s Financials return of 6%. The Fund’s two largest contributing stocks in the sector included the following:
The Fund’s IT holdings gained 37%, outperforming the Index’s return of 24% in the sector. The Fund’s two largest IT contributors included:
Would you please describe the Fund’s investment approach?
The Fund typically owns between 25 and 50 companies that we believe offer the best prospects for long-term sales and earnings growth. We feel that running a high-conviction portfolio allows us to allocate more capital into our best ideas and is the best way to achieve outperformance for our shareholders over time. As of June 30, 2025, the Fund held 32 companies, while the Morningstar Large Growth Category was much less focused, owning 92 holdings on average.
When considering companies for investment, we look at a wide range of growth characteristics, giving us the flexibility to invest in companies at different stages in their growth life cycle. The majority of the Fund is invested in what we consider to be Established Growth Companies. These are companies that tend to have market leadership positions, with dominant brands, well-known products and services, solid balance sheets, and business models led by vetted management teams. A smaller portion of the Fund invests in Next-Gen Growth Companies. These companies are typically at an earlier point in their growth cycle and are generally growing at a faster pace than more established companies. In addition, the Fund may be allocated in some Opportunistic Growth Companies, which we consider to be cyclical growth companies or companies that are currently out of favor.
How do the Fund’s growth characteristics compare to the S&P 500 Index?
We believe that sales and earnings growth drive share price appreciation over time. Accordingly, our goal for the Fund is to own a portfolio of companies that can collectively grow their future sales and earnings at faster rates relative to the broad market and their peers. As of June 30, 2025, the Fund’s equity portfolio had a 3-year projected average annual sales growth rate that was nearly 2X that of the S&P 500 Index, and its 3- to 5-year estimated forward earnings growth rate was significantly higher than the S&P 500.