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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, The Davenport Value & Income Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"The Davenport Value & Income Fund underperformed in Q2 2026 as AI and semiconductor momentum dominated markets, but management maintains disciplined value orientation. Top performers included Texas Instruments, Cisco, and health insurers as underwriting cycles improved."
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.
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