Davis Selected Advisers, LP, also known as Davis Advisors, is a financial advisor firm in Tucson, Arizona with billions of dollars in client assets under management. The firm employs a small team of financial advisors that focuses on mostly institutional and sub-advisory services. The firm does have some individual clients through these institutional advisory relationships, though. Davis does not offer any financial planning services.
As a fee-only firm, Davis Selected Advisers' sole method of earning income comes from client-paid advisory fees. A fee-based firm, on the other hand, also receives commissions from selling financial products and securities.
Davis Selected Advisers Background
Davis Selected Advisers has a long history, as it was founded in 1969. Through its structure as a limited partnership, the firm is primarily owned by members of the Davis family, along with various employees and officers of the firm. Andrew Davis and Christopher Davis each own more than a quarter of the firm's shares. Davis Investments, LLC, is owned by Christopher Davis and is the sole general partner of the firm.
The investment team at Davis has decades of combined investment management experience, and several employees are chartered financial analysts (CFAs).
Davis Selected Advisers Client Types and Minimum Account Size
As a sub-advisor and investment advisor, Davis Selected Advisers works with a wide variety of institutional clients. These include investment companies, pooled investment vehicles, retirement plans, charities, investment advisors and businesses. Through some of these clients, the firm works with individuals, including those with and without a high net worth.
The minimum account size requirements at Davis Selected Advisers vary. For managed money and wrap fee accounts, the minimum is $100,000, whereas the minimum for sub-advised accounts and private accounts is $10 million.
Services Offered by Davis Selected Advisers
Davis Selected Advisers only offers investment management and sub-advisory services. The firm's provides these services through a few different equity-centric strategies, though other securities are sometimes used too. Davis' available strategies are as follows:
- Large-cap value
- Concentrated equity
- Multi-cap equity
- Financial services
- International companies
- Global companies
- Real estate companies
- Appreciation and income
- Government securities
- Government money market funds
The firm also provides managed money and wrap fee accounts. While the majority of the firm's assets are managed on a discretionary basis, it also engages in some non-discretionary arrangements.
Davis Selected Advisers Investment Philosophy
For the most part, Davis Selected Advisers manages client accounts according to one or more of the strategies above. These strategies are often managed on an in-house basis by the firm and its investment team. In some cases, advisors will pair clients specifically with portfolios based on their personal investor profile. Institutional clients also have the ability to impose certain investment restrictions.
The firm's general strategies are maintained according to the Davis Investment Discipline. This involves conducting extensive research in the hopes of identifying companies with long-term growth potential, sustainable business plans and other similar advantages. The firm also seeks out companies that are trading at discounts. Effective and diversified stock selection is central to Davis Selected Advisers' philosophy.
Fees Under Davis Selected Advisers
Davis Selected Advisers charges annual fees to clients based on a percentage of their total AUM. These fees, for the majority of accounts and clients, are negotiable and deteremined at the outset of the client-advisor relationship. Here's a breakdown of the typical annual fees by client type:
|Davis Selected Advisers Fee Schedule|
|Client Type||Annual Fees|
|Investment companies||Start at 0.55%|
|Government money market investment companies||Start at 0.30%|
|Pooled investment vehicles||0.35% - 0.50%|
|Private accounts||0.30% - 0.65%|
|Managed wrap accounts||0.34% - 0.55%|
What to Watch Out For
Davis Selected Advisers has one disclosure listed on its SEC-filed Form ADV. This disclosure is in reference to two separate class action lawsuits that were filed against the firm, both of which alleged it charged excessive fees to certain clients. Both of these claims were dismissed, resulting in no sanctions against the firm.
Davis Selected Advisers does not provide financial planning services to clients, instead focusing its efforts entirely on investment management and sub-advising. If you're looking for a financial advisor who can help you build a financial plan, try SmartAsset's free tool to get paired with up to three options in your area.
Opening an Account With Davis Selected Advisers
To find out more about how to access the services of Davis Selected Advisers, visit the firm's website or reach out over the phone by calling (800) 279-2279.
All information is accurate as of the writing of this article.
- Whether you're new to retirement planning or you're about to retire, a financial advisor can help. Luckily, finding an advisor in your area isn't hard with SmartAsset's free advisor matching tool. If you're ready to start working with a financial advisor, get started now.
- To figure out whether you're on pace for a secure retirement, take a look at SmartAsset's retirement calculator. And if you're ready to get more serious about investing, try our asset allocation calculator.