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Clipper

Clipper Parent Rating

Above Average

Davis Advisors has built an investor-friendly backbone, which underscores its Above Average Parent rating.

The Davis family has provided stability to this U.S. equity-oriented asset manager for more than 50 years. Christopher Davis, CEO and portfolio manager, is a third-generation investor at the firm, and his family has significant investments in its strategies. An experienced 10-person investment team supports him. Portfolio managers invest alongside fundholders, with a large portion of their pay tied to beating their benchmarks over five-year periods; some of that reward is invested in fund shares.

These attributes don’t mean the firm is perfect. Although the investment team has stabilized, it experienced heightened turnover between 2014 and 2021. Disappointing performance since the 2007-09 global financial crisis exposed weakness in the team’s high-conviction approach. Bold forays into markets such as China and other concentrated bets highlight an old-fashioned approach to risk—considering it primarily when picking stocks rather than when building portfolios.

The team’s expertise in financials remains a bright spot, and these stocks often comprise a significant portion of its portfolios. Davis offers an apt number of strategies, and fees remain competitive, even as assets under management dropped to USD 20 billion from USD 100 billion in the mid-2000s.

Clipper Investments

Market

US Open-end ex MM ex FoF ex Feeder

Total Net Assets

1.14 Bil

Investment Flows (TTM)

−88.32 Mil

Asset Growth Rate (TTM)

−9.45%

# of Share Classes

1
Morningstar Rating # of Share Classes
0
0
0
1
0
Not Rated 0
Name
Morningstar Rating Overall
5-Year Category Rank
Clipper77

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