Davis Opportunity Fund

    Overview

    Fund Statistics (Class A)

    Inception Date 12/1/94
    Expense Ratio 0.94%
    Turnover Rate 12%
    Results from inception through 3/31/23 (A shares without a sales charge):
    Fund 10.07%
    Average Fund in Category 9.05%

    Investment Strategy

    The goal of the Davis Opportunity Fund 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 Fund has outperformed the S&P 1500® Index since Davis began managing the Fund.1 Click here to learn more about our long-term returns.

    Why Invest in the Davis Opportunity Fund7

    Sixty Years of Experience

    The Davis family has compounded wealth for investors over six decades and three generations.

    Long-Term Investment Results

    The Fund has outperformed the S&P 1500® Index since Davis began managing the Fund. A hypothetical $10,000 investment in the Fund on January 1, 1999 compounded to over $68,589 as of March 31, 2023 vs. only $55,934 for the S&P 1500® Index.1

    Aligned with Shareholders

    With more than $2 billion invested in funds and other accounts following the same investment strategy, we experience the same risks and reap the same rewards.2

    Lower than Average Turnover Rate3

    Davis Opportunity Fund, 12%; Lipper category average, 72%


    Selective Attractive Growth Undervalued

    DOF invests in only a select group of well-researched companies

    DOF portfolio companies have offered attractive growth

    DOF portfolio companies are 37% less expensive than the index

    Holdings**

    5-Year EPS Growth**

    P/E (Forward)**
    1505
    40
    DOF
    S&P1500
    15.2%
    9.7%
    DOF
    S&P1500
    10.8x
    17.1x
    DOF
    S&P1500

    The companies of Davis Opportunity Fund have grown more than the companies in the index, yet are 37% less expensive.

    In fact, this gap between price and value is among the widest we have ever seen.

    We believe this sets the stage for attractive returns in the years ahead.

    Performance as of 3/31/23

    A hypothetical $10,000 investment in the Davis Opportunity Fund on 1/1/99 compounded to $68,589 by March 31, 2023 vs. only $55,934 for the S&P 1500® Index.

    Total Returns
    as of March 31, 2023    		 1
    Year    		 5
    Years    		 10
    Years
    Davis Opportunity Fund Class A Shares
    with a maximum 4.75% sales charge     		-11.43% 5.08% 9.61%

    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 shares may be worth more or less than their original cost. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.94%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.279.0279.


    Portfolio Characteristics as of 3/31/23

    Market Capitalization

    Small Cap 2.0%
    Mid Cap 12.1%
    Large Cap 85.9%

    Portfolio Composition

    Opportunity Fund S&P 1500®
    Forecast P/E Ratio 10.8 17.1
    P/B Ratio 2.7 3.8
    Weighted Average Market Cap ($bn) 162.9 469.7
    Beta (3 year) 0.9 1.0
    Standard Deviation (5 year, A shares) 19.8 18.9
    Number of Holdings 40 1,505

    Turnover and Expenses

    Opportunity Fund Lipper Category Average
    Turnover Rate3 12% 72%
    Expense Ratio3 (A Shares) 0.94% 0.91%

    Top 10 Holdings

    Owens Corning 6.0%
    Wells Fargo 6.0%
    Quest Diagnostics 5.4%
    Viatris 5.2%
    Capital One Financial 4.6%
    Teck Resources 4.5%
    Cigna Group 4.5%
    UnitedHealth Group 4.3%
    Schneider Electric 3.8%
    U.S. Bancorp 3.8%

    Click here for month-end holdings.
    Click here for quarter-end holdings.


    Top 5 Industries

    Health Care 22.3%
    Capital Goods 22.3%
    Information Technology 10.8%
    Banks 9.7%
    Financial Services 7.4%

    Literature

    Fact Sheets
    Fund Fact Sheet Download

    How the Fund applies the Davis Investment Discipline to companies of various market capitalizations, Portfolio characteristics, top holdings, and performance.

    Portfolio Composition Download

    Quarterly update of portfolio characteristics.
    Insights into the Fund
    Davis Opportunity Fund: Selective. Attractive Growth. Undervalued. Download

    Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination.
    Portfolio Manager Commentary
    Manager Commentary - Annual Review 2023 Download View

    The Fund research team discusses the Portfolio, performance and how they apply the Davis Investment Discipline to uncover opportunities in the current environment.

    This material must be accompanied or preceded by a current Davis Opportunity Fund Prospectus. You should carefully consider the Fund’s investment objective, risks, charges, and expenses before investing. The prospectus contains this and other information and can be obtained by clicking here or calling 800.279.0279. Read the prospectus carefully before you invest or send money.


    1Class A shares, not including a sales charge. Davis began managing the fund on 1/1/99.  Past performance is not a guarantee of future results.

    2As of December 31, 2022. This includes Davis Advisors, the Davis family and Foundation, our employees, and Fund Directors.

    3See Expense ratio/Turnover link below.

    ** 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 forcasted 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.


    (17) Read here for objective/risk disclosures

    (19) Read here for Expense ratio/Turnover disclosures

    (20) Read here for Index definition

    (9) Read here for additional disclosures

    Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756