Based in Richmond, Virginia, Davenport & Company LLC is an independent advisory firm serving various individual and institutional clients. The financial advisor is compensated through a fee-based fee structure, and it has more than $11.7 billion in assets under management (AUM). The firm has nearly 200 advisors serving fewer than 16,000 clients.
Davenport & Company LLC 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, South 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).
Davenport & Company LLC 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, non-profit organizations and corporations.
The firm’s minimum account size requirements vary based on account type, but the minimum initial account values typically range from $60,000 to $5,000,000.
Services Offered by Davenport & Company LLC
Davenport offers the following services:
- Portfolio management
- Financial planning
- Pension consulting
- Selection of other advisors
- Publication of periodicals and newsletters
- Educational seminars/workshops
Davenport & Company LLC 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.
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 which account for 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 0.50% to 1.50%, while fees for portfolio review fall between 0.10% and 0.50%. Fees and commissions for other asset management and retirement plan accounts generally range from 0.20% to 2.50%, depending on the amount of assets. Davenport’s also charges performance-based fees for private funds.
Davenport & Company LLC Awards and Recognition
For several years, the firm has been listed as Virginia Business magazine’s “Best Places to Work in Virginia.” The firm has also been recognized as one of the “Best Employers in North Carolina” by Business North Carolina magazine.
What to Watch Out For
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 works to put client interests above its own.
Davenport has three disclosures listed on its Form ADV. All were regulatory action-related disclosures. The most recent one occurred in 2016 when the firm received a $15,000 fine for failing to comply with supervisory requirements. The U.S. Securities and Exchange Commission (SEC) also alleged that Davenport failed to report reportable order events. The case was also resolved through censure.
Opening an Account With Davenport & Company LLC
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.