Davis All-Cap SMA Portfolio
Overview
Investment Strategy
The goal of the Davis All-Cap SMA Portfolio is to create an opportunistic portfolio that can seek attractive businesses across all market caps, industries and sectors.
Using our signature
Davis Investment Discipline, the Portfolio has outperformed the S&P 1500®
Index since Davis began managing the Portfolio (gross of fees)1 Click here to learn more about our
historical record of attractive long-term returns.
Why
Invest in the Davis All-Cap SMA Portfolio
Sixty
Years of Experience
The Davis family has compounded wealth for investors over six decades and three
generations.
Long-Term Investment Results
The Davis All-Cap SMA Portfolio has outperformed the S&P 1500® Index by an average of 2.0% per year since Davis began managing the Portfolio. A hypothetical $100,000 investment in the Portfolio on January 1, 1999 compounded to $977,130 as of June 30, 2023 vs. only $606,269 for the S&P 1500® Index (Gross of fees. See below for net of fee returns).1
Aligned with Shareholders
With more than $2 billion invested side by side with fellow shareholders, we experience the same risks and reap the same rewards.2
| Selective | Attractive Growth | Undervalued |
|---|---|---|
|
All-Cap SMA invests in only a select group of well-researched companies |
All-Cap SMA portfolio companies have grown more than the index |
Davis All-Cap Value SMA portfolio companies are 41% less expensive than the index |
Holdings** |
5-Year EPS Growth** |
P/E (Forward)** |
|
1506
32
All-Cap
SMA S&P1500
|
Performance as of 6/30/23
A hypothetical $100,000 investment in the Davis All-Cap Portfolio on January 1, 1999 compounded to $977,130 as of June 30, 2023 vs. only $606,269 for the S&P 1500® Index.
| Average Annual Total Returns as of June 30, 2023 All-Cap Portfolio |
YTD* | 1 Year |
3 Years |
5 Years |
7 Years |
10 Years |
15 Years |
Since Inception (1/1/99) |
|---|---|---|---|---|---|---|---|---|
| gross | 13.58% | 18.93% | 16.76% | 9.48% | 12.25% | 11.92% | 10.74% | 9.76% |
| with a 3% maximum wrap fee | 11.92% | 15.46% | 13.34% | 6.25% | 8.95% | 8.64% | 7.48% | 7.22% |
* YTD is not annualized.
The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s account may be worth more or less than their original cost. Current performance may be higher or lower. Total return updates are available quarterly. Please ask your financial advisor to contact Davis Advisors.
Portfolio Characteristics as of 6/30/23
Portfolio Composition
| Davis All-Cap Portfolio | S&P 1500® Index |
|
|---|---|---|
| Forecast P/E Ratio | 11.6 | 19.7 |
| P/B Ratio | 2.8 | 4.1 |
| Weighted Average Market Cap ($bn) | 201.8 | 593.9 |
| Beta (3 year) | 0.9 | 1.0 |
| Standard Deviation (5 year) | 21.3 | 21.1 |
| Number of Holdings | 32 | 1,506 |
| Turnover | 11.8 | 3.1 |
Market Capitalization
| Small Cap | 3.2% |
| Mid Cap | 2.7% |
| Large Cap | 94.1% |
Top Industries
| Financials | 24.4% |
| Health Care | 22.5% |
| Industrials | 21.7% |
| Information Technology | 12.5% |
| Communication Services | 7.3% |
| Materials | 5.4% |
| Consumer Discretionary | 3.6% |
| Consumer Staples | 2.6% |
Top 10 Holdings
| Capital One Financial | 7.0% |
| Owens Corning | 7.0% |
| Wells Fargo | 6.5% |
| Teck Resources | 5.1% |
| Quest Diagnostics | 4.9% |
| Viatris | 4.9% |
| Cigna Group | 4.5% |
| Meta Platforms | 4.2% |
| UnitedHealth Group | 4.2% |
| Applied Materials | 3.6% |
Click here for quarter-end holdings
Literature
| Insights into the Portfolio | ||
|---|---|---|
| Fact Sheet | Download Share | Goals of the Portfolio, top holdings, characteristics and Portfolio attributes. |
| Quarterly Review Book: Davis All-Cap SMA | Download Share | A comprehensive quarterly update on the Portfolio, including commentary on investment strategy, performance and Portfolio statistics, and holdings. |
| Davis All Cap SMA: Selective. Attractive Growth. Undervalued. | Download Share | Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination. |
| Portfolio Commentaries | ||
| All-Cap Portfolio Commentary - Summer Update 2023 | Download View Share | A quarterly discussion of the market environment, Portfolio performance, major positions, and investment opportunities. |
This material may be shared with existing and potential clients to provide information concerning market conditions and the investment strategies and techniques used by Davis Advisors to manage its client accounts. Please refer to Davis Advisors Form ADV Part 2 for more information regarding investment strategies, risks, fees, and expenses. Clients should also review other relevant material, including a schedule of investments listing securities held in their account.
The Davis All Cap Portfolio is represented by Davis Advisors’ Multi-Cap SMA Composite. See Performance disclosure for a description of the Composite.
1Gross of fees. These figures would be lower if fees were included. Davis began managing the portfolio on 1/1/99. Past performance is not a guarantee of future results.
2As of June 30, 2023.
** The Attractive Growth and Undervalued reference relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. Past performance is not a guarantee of future returns. Performance may vary. Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The values for the portfolio and index are the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio or index. Forward Price/Earnings (Forward P/E) Ratio is a stock’s current price divided by the company’s forecasted earnings for the following 12 months. The values for the portfolio and index are the weighted average of the P/E ratios of the stocks in the portfolio or index.
(1) Read here for objective/risk disclosures
(2) Read here for performance/rolling return disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756