Based in Richmond, Virginia, Davenport & Company is an independent advisory firm serving thousands of individual and institutional clients. The financial advisor is compensated through a fee-based fee structure, and it has more than $16 billion in assets under management (AUM).
Davenport & Company Background
The private, employee-owned firm was established in 1863 by Issac Davenport Jr. and Charles E. Wortham. Davenport has several offices scattered throughout Virginia, and it offers advisory services in its North Carolina, Maryland and Georgia locations. Davenport also utilizes the strategies of its subsidiary, Davenport Asset Management.
The firm is a registered investment advisor (RIA), and it additionally holds membership with the Financial Industry Regulatory Authority (FINRA), New York Stock Exchange and Securities Investor Protection Corporation (SIPC).
In 2021, Barron's wrote a piece about Davenport, focusing on the Small Cap Focus fund the firm offers.
Davenport & Company Client Types and Minimum Account Sizes
Davenport’s client base consists of individuals and high-net-worth individuals, pooled investment vehicles, banks, investment companies, pension and profit-sharing plans, trusts, estates, nonprofit organizations and corporations.
The firm’s minimum account size requirements vary based on the account type, but the minimum initial account values typically range from $25,000 to $1 million.
Services Offered by Davenport & Company
Davenport offers the following services:
- Portfolio management
- Financial planning
- Pension consulting
- Selection of other advisors, including private fund managers
- Publication of periodicals and newsletters
- Educational seminars/workshops
Davenport & Company Investment Philosophy
Davenport says on its website that it strives to strengthen client relationships by serving them in a trustworthy manner. The firm’s key investment strategies include long- and short-term purchases, trading, short sales, margin transactions and option writing. The firm also utilizes an investment policy committee to make investment decisions and oversee Davenport Asset Management’s strategies.
Advisors also employ technical, cyclical, charting and fundamental analysis when evaluating securities.
The Small Cap Focus fund is one of the stars at Davenport. It focuses on investing in small companies where the CEO is devoted to the firm, possibly the founder -- as opposed to a bigger company where the leader may only be there for the paycheck, and could cash out at any time.
Fees Under Davenport & Company LLC
Davenport's management fees vary based on account type and cost option. The firm receives asset-based compensation, but it also earns commissions from certain accounts. Davenport requires clients to pay wrap fees that cover investment advice, custody of assets and brokerage execution services. For wrap fee and/or commission accounts, the firm charges fees quarterly. Advisors also charge fees and/or commissions in advance or in arrears based on AUM and securities transactions.
Fees for the firm’s portfolio management range from 0.75% to 1.25%. Fees and commissions for other asset management and retirement plan accounts generally range from 0.10% to 2.50%, depending on the number of assets. Davenport’s also charges performance-based fees for private funds.
What to Watch Out For
Davenport has four disclosures listed on its Form ADV. All were regulatory action-related disclosures. The most recent one allegedly occurred in 2017 when the firm paid a $115,000 fine for allegedly failing to comply with several FINRA and SEC rules.
Also, keep in mind that firm professionals receive additional compensation for recommending investment products from mutual fund companies, money market funds and insurance companies. This could incentivize advisors to recommend such products over other products that may be more suitable to a client’s needs. However, the firm says it puts client interests above its own.
Opening an Account With Davenport & Company
Davenport offers prospective clients three key options for getting in touch. You can ask questions or set up an appointment through the firm’s informational email, or you can fill out Davenport’s contact form on its website. You can also call or visit any of the firm’s locations. You can reach its main customer service line at 1-800-846-6666.
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All information was accurate as of the writing of this article.
