Value Line Larger Companies Focused Fund
| Value Line Larger Companies Focused Fund | |
|---|---|
| Investor Class | VALLX |
| Institutional Class | VLLIX |
| AUM | $405M |
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 03/31/26, the Fund’s Top 10 Holdings were as follows:
NVIDIA Corp (7.45%),
Meta Platforms Inc Class A (6.19%),
Alphabet Inc Class A (5.90%),
Advanced Micro Devices Inc (5.66%),
Broadcom Inc (4.78%),
Netflix Inc (4.73%),
Madrigal Pharmaceuticals Inc (4.71%),
AppLovin Corp Ordinary Shares - Class A (4.47%),
Amazon.com Inc (4.33%),
Coinbase Global Inc Ordinary Shares - Class A (3.78%)
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 / 522 funds; 5 Year / 5 stars / 500 funds; 10 Year / 4 stars / 399 funds; )
VLIFX (3 Year / 2 stars / 469 funds; 5 Year / 5 stars / 448 funds; 10 Year / 5 stars / 374 funds; )
VALLX (3 Year / 3 stars / 998 funds; 5 Year / 2 stars / 937 funds; 10 Year / 2 stars / 763 funds; )
VALSX (3 Year / 1 stars / 998 funds; 5 Year / 2 stars / 937 funds; 10 Year / 2 stars / 763 funds; )
VLAAX (3 Year / 1 stars / 465 funds; 5 Year / 1 stars / 445 funds; 10 Year / 2 stars / 371 funds; )
VALIX (3 Year / 5 stars / 465 funds; 5 Year / 1 stars / 445 funds; 10 Year / 4 stars / 371 funds; )
Source: Morningstar Direct
How did equity markets perform in the first quarter of 2026 and what was the Fund’s performance during this period?
Equity markets experienced a challenging start to 2026, with broad-based declines across most major indices. The quarter was marked by heightened volatility driven by geopolitical uncertainty, elevated energy prices, and shifting expectations around monetary policy. Investor sentiment weakened as capital rotated toward more defensive areas of the market, with value-oriented sectors outperforming growth.
Against this backdrop, the Value Line Larger Companies Focused Fund declined 14.05% during the quarter, underperforming the S&P 500 Index’s decline of 4.33% and the Morningstar Large Growth Category average decline of 8.44%. While short-term performance was impacted by market volatility and sector rotation, we believe the Fund remains well positioned with a portfolio of high-quality companies with strong long-term growth prospects.
Please visit the Fund’s performance page for complete performance information.
What drove the Fund’s performance relative to the S&P 500 Index during Q1?
The Fund’s relative performance in the first quarter was impacted by both sector allocation and stock selection.
At the sector level, Information Technology and Financials were the largest detractors to performance relative to the S&P 500 Index. The Fund’s lack of exposure to the Energy sector, the best-performing sector during the quarter, also weighed on relative results.
From a stock-specific perspective, several holdings experienced a sharp reversal following strong gains in prior periods. AppLovin Corp. (APP, -41%), Robinhood Markets Inc. (HOOD, -39%), and Coinbase Global Inc. (COIN, -23%), were poor performers, affected by a combination of valuation compression and shifting investor sentiment.
On the positive side, a few of the Fund’s top contributors included ARM Holdings PLC (ARM, +38%), Netflix Inc. (NFLX, +3%), and CoreWeave Inc. (CRWV, +8%), which benefited from strong fundamentals and continued leadership positions in key secular growth areas.
Overall, we believe much of the weakness during the quarter was driven by multiple compression from geopolitical risks rather than weakening underlying business fundamentals for the companies in the Fund. We remain longer term focused and believe that companies that deliver strong sales and earnings growth will be rewarded over time through stock price appreciation.
Would you please provide some portfolio examples of companies benefiting from the use of artificial intelligence?
Artificial intelligence continues to be a key driver of innovation and productivity across a wide range of industries, and we are seeing tangible benefits emerge at the company level. Several examples from the portfolio include:
How do the Fund’s forward revenue and earnings growth rates compare to the S&P 500 Index?
As of March 31, 2026, the Fund’s equity portfolio had a 3-year projected average annual sales growth rate that was more than double that of the S&P 500 Index, and its 3- to 5-year estimated forward earnings growth rate was 1.4X higher than the S&P 500.