The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Davenport Value & Income Fund returned 3.17% in Q2 2026, underperforming the Russell 1000 Value Index's 13.87% return as semiconductor stocks dominated market gains with a 138% quarterly advance. The fund's best performers were Texas Instruments and Cisco, both benefiting from AI infrastructure spending, along with health insurers UnitedHealth and Elevance as the underwriting cycle improved. Energy holdings Exxon Mobil and Chevron detracted as oil prices fell 30% following reduced Iran tensions. Accenture lagged on concerns that AI efficiency gains may reduce billable consulting hours. The fund initiated positions in Abbott Laboratories and International Flavors & Fragrances at 16-17x earnings, below historical averages, with 2-2.6% dividend yields. Six holdings raised dividends, including Johnson & Johnson for the 64th consecutive year. Major banks increased dividends 10-12% after passing Federal Reserve stress tests. Management emphasizes the fund trades at a significant discount to the Russell 1000 Value while providing a 2.5% yield, maintaining commitment to value and income principles despite near-term underperformance versus momentum-driven technology stocks. The team views current market concentration in capital-intensive AI stocks as creating opportunity for patient, dividend-focused investors.
The Davenport Value & Income Fund maintains disciplined adherence to value investing and dividend income generation despite significant underperformance versus momentum-driven indices dominated by AI and semiconductor stocks in Q2 2026.
Management expects the current one-sided sentiment toward technology and AI to eventually normalize, though timing is uncertain. The fund will continue to prioritize companies that possess more capital than they need and return excess capital to shareholders via dividends and buybacks. The team views return on capital and return of capital as timeless investment principles that can benefit investors who stay true to them, particularly in an environment where many high-flying companies have become increasingly capital intensive.
As of Jul 28, 2026
The fund is managed by a highly experienced three-person team led by George L. Smith III, CFA, who serves as Chairman of the Investment Policy Committee and Managing Director with 27 years of investment experience and 24 years at Davenport. The team includes co-managers Jeff Omohundro, CFA, and Christopher G. Pearson, CFA, all bringing extensive expertise in equity management. Founded in 1983 as the first portfolio launched by Davenport Asset Management, the fund has established a long track record of disciplined investment management with strong historical performance including 17.0% annualized returns over three years.
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