Tracking Christopher Davis' Davis Selected Advisers 13F Portfolio - Q2 2022 Update

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John Vincent
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Summary

  • Davis Selected Advisers' 13F portfolio value decreased from $19.79B to $15.59B this quarter.
  • They increased Teck Resources and Owens Corning while reducing Alibaba Group Holding and American Express.
  • The top three positions are Wells Fargo, Berkshire Hathaway, and Capital One Financial, and they add up to ~25% of the portfolio.

Manhattan Financial District at Sunset

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This article is part of a series that provides an ongoing analysis of the changes made to Davis Selected Advisers' 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 8/15/2022. Please visit our Tracking Christopher Davis' Davis Selected Advisers 13F Portfolio series to get an idea of their investment philosophy and the fund's moves during Q1 2022.

This quarter, Davis Selected Advisers' 13F portfolio decreased ~21% from $19.79B to $15.59B. The number of holdings decreased from 121 to 114. The top three holdings are at ~25% while the top five holdings are close to ~36% of the 13F assets: Wells Fargo, Berkshire Hathaway, Capital One Financial, Alphabet, and Cigna.

Note: Davis Selected Advisors manage several mutual funds and ETFs. The flagship mutual fund is Davis New York Venture Fund (MUTF:NYVTX) with ~$7B in assets. Since its 1969 inception, the fund has generated significant alpha: 11.08% annualized over 53 years compared to 10.15% annualized for the S&P 500 index. Also, they advise the Clipper Fund (MUTF:CFIMX) which was incepted in 1984.

Stake Increases:

Teck Resources (TECK) and Owens Corning (OC): These small stakes were increased this quarter. The 2.14% of the portfolio stake in TECK saw a ~30% increase this quarter at prices between ~$30.50 and ~$45.75. The stock currently trades at $33.85. OC is a 1.62% of the portfolio position primarily built this quarter at prices between ~$74 and ~$98 and it is now at $81.73.

Stake Decreases:

Wells Fargo (WFC): WFC is a very long term stake that has been in the portfolio since their first 13F filing in Q1 1999. At the time, it was already a very large stake at ~28M shares. Recent activity follows. Q3 2020 saw a ~45% stake increase at prices between ~$23.50 and ~$26.50. Since then, the activity had been minor. Last two quarters have seen a ~15% trimming. The stock currently trades at $43.71, and the stake is the largest at 8.20% of the portfolio.

Berkshire Hathaway (BRK.A) (BRK.B): The ~8% of the portfolio Berkshire stake is their second largest position. It has been in the portfolio since their first 13F filing in Q1 1999. Recent activity follows. Last two quarters saw a ~10% trimming at prices between ~$268 and ~$360. It is now at ~$281.

Capital One Financial (COF): The top-three 7.33% COF stake was a very small position first purchased in 2014. 2017 saw a substantial ~12M share stake built at prices between ~$78 and ~$100. The 2018-2020 timeframe also saw incremental buying as the stake was increased to ~16.2M shares. Last six quarters have seen a one-third reduction at prices between ~$99 and ~$178. The stock currently trades at ~$106.

Alphabet Inc. (GOOG) (GOOGL): GOOG is a top-five ~7% of the portfolio position first purchased in 2016 at prices between ~$38 and ~$40. The stake has seen periodic selling since. Recent activity follows. Last five quarters have seen a ~45% selling at prices between ~$87 and ~$150. The stock currently trades at ~$109.

Note: the prices quoted above are adjusted for the 20-for-1 stock split in July.

Cigna Corp. (CI): The 5.31% of the portfolio CI stake was built in 2020 at prices between ~$142 and ~$220. Next quarter saw a ~50% stake increase at prices between ~$203 and ~$244. That was followed with a ~185% increase in Q3 2021 at prices between ~$218 and ~$246. The stock currently trades at ~$283. Last two quarters have seen minor trimming.

U.S. Bancorp (USB): USB position is a fairly large 4.91% of the portfolio stake. A very small position was first purchased in 2010. A substantial ~9.2M stake was built in 2018 at prices between ~$45 and ~$58. Next year saw a ~10% trimming but 2020 saw a stake doubling at prices between ~$31 and ~$59. The stock currently trades at $45.61. Last four quarters have seen a ~8% trimming.

Applied Materials (AMAT): AMAT is a 4.33% long-term stake first purchased in 2011. The position remained very small until 2018 when a ~13M shares stake was built at prices between ~$30 and ~$62. Next year saw a ~15% stake increase at prices between ~$34 and ~$62. Since then, the position has seen selling. Q1 2021 saw a one-third reduction at prices between ~$85 and ~$140. Last five quarters have also seen minor trimming. The stock is now at ~$94.

Intel Corporation (INTC): INTC is a ~4% of the portfolio stake built in 2019 at prices between ~$44 and ~$60. Next year saw a ~50% stake increase at prices between ~$44 and ~$69. Last year had also seen a one-third increase at prices between ~$49 and ~$68. The stock currently trades well below the low end of their purchase price ranges at $31.92. There was marginal trimming in the last two quarters.

Viatris Inc. (VTRS): The 3.73% VTRS stake was established in Q1 2021 at prices between ~$14 and ~$19. Next three quarters saw minor increases and that was followed with a ~25% increase last quarter at prices between ~$10 and ~$15.50. The stock currently trades just below the low end of those ranges at $9.55. There was a minor ~2% trimming this quarter.

Bank of New York Mellon (BK): A huge 110M share stake was built in BK during the 2007-2011 time period at prices between ~$18 and ~$49. The position has since been reduced. The decade through 2020 saw the stake reduced to ~15M shares at prices between ~$21 and ~$58. Last several quarters have also seen minor trimming. The stock currently trades at $41.53, and the stake is at 3.70% of the portfolio.

JD.com (JD): The 3.57% JD stake was a very small position first purchased in 2014. The position remained small until 2018 when there was a substantial increase from ~2.5M shares to ~7.2M shares at prices between ~$19 and ~$51. Since then, the position has wavered. Recent activity follows. Q3 2021 saw a ~250% stake increase at prices between ~$62 and ~$83 while in the following quarter there was a ~35% selling at prices between ~$66 and ~$92. Last quarter saw a ~18% stake increase at prices between ~$43 and ~$78. The stock currently trades at $63.49. There was a ~3% trimming this quarter.

Amazon.com, Inc. (AMZN): The 3.55% of the portfolio position in AMZN was first purchased in 2006. A very large ~12M share stake was built next year at prices between ~$2 and ~$5. The position has since been substantially reduced over the years. Recent activity follows. Q3 2021 saw a ~15% selling at prices between ~$160 and ~$187. The stock currently trades at ~$127. Last three quarters have also seen minor trimming.

Note: the prices quoted above are adjusted for the 20-for-1 stock split in June.

Meta Platforms (META), previously Facebook: META is a 3.42% of the portfolio stake first purchased in 2015 at prices between ~$75 and ~$110. The position has wavered. Recent activity follows. There was a ~15% trimming in Q3 2021 at prices between ~$337 and ~$382 while last quarter there was a ~25% stake increase at prices between ~$187 and ~$339. The stock currently trades at ~$163. There was minor trimming this quarter.

JPMorgan Chase (JPM): A ~43M share stake in JPM was first built in 2004 at an average price in the high-30s. The position size peaked at over 78M shares by 2008. Since then, the stake has wavered. Recent activity follows. Last six quarters have seen a ~35% selling at prices between ~$113 and ~$172. The stock currently trades at ~$114, and the stake is at 3.25% of the portfolio.

Texas Instruments (TXN): A ~58M share stake in TXN was built in the 2007-08 timeframe at prices between ~$14 and ~$38. The position has since been reduced. Recent activity follows. Last six quarters have seen a ~13% trimming at prices between ~$149 and ~$201. The stock currently trades at ~$165 and the stake is at 2.95% of the portfolio.

Darling Ingredients (DAR): The small ~1% DAR position saw a stake doubling in Q3 2021 at prices between ~$64 and ~$79. Last three quarters have seen only minor adjustments. The stock currently trades at ~$76.

Coupang Inc. (CPNG): CPNG had an IPO in Q1 2021. Shares started trading at ~$49 and currently goes for $16.90. The small 0.70% of the portfolio stake was established in H1 2021 at prices between ~$36 and ~$49. Last quarter saw the position more than doubled at prices between ~$15 and ~$29. There was marginal trimming this quarter.

Alibaba Group Holding (BABA), American Express (AXP), Bank of N.T. Butterfield & Son (NTB), Bank of America (BAC), Chubb Ltd. (CB), Hollysys Automation (HOLI), IAC Inc. (IAC), Loews Corp (L), Markel Corp. (MKL), Microsoft Corp. (MSFT), and Quest Diagnostics (DGX): These small (less than ~2.15% of the portfolio each) stakes were decreased this quarter.

Note 1: They have a ~6.7% ownership stake in NTB and a ~10.5% ownership stake in HOLI.

Note 2: DiDi Global (OTCPK:DIDIY) was a small position as of last quarter. The stock was delisted in June and now trades OTC. It is unclear whether this stake was sold or is not in the 13F report as it is no longer a 13F security.

The spreadsheet below highlights changes to Davis Selected Advisers' 13F holdings in Q2 2022:

Christopher Davis - Davis Selected Advisors' Q2 2022 13F Report Q/Q Comparison

Christopher Davis - Davis Selected Advisers' Q2 2022 13F Report Q/Q Comparison (John Vincent (author))

This article was written by

John Vincent profile picture
21.96K Followers
Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.

Disclosure: I/we have a beneficial long position in the shares of AMZN, CPNG, GOOGL, INTC, META, VTRS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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