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Davis Advisors has deep roots, but its waning competitive edge drops its Parent rating to Average from Above Average.

Founded in 1969, the firm’s heyday was in the mid-2000s, when the Davis strategies—focused mainly on US and international equities—had more than USD 100 billion in total assets. As of late 2025, however, that was down to USD 25 billion. A prescient foray into active-equity exchange-traded funds in 2017-18 wasn’t enough to stem the tide of outflows. With declining economies of scale, its products’ expense ratios, once attractive, are now mostly middling.

CEO Chris Davis, representing the third generation of his family at the helm, has kept Davis Advisors focused on value-oriented investing, but the firm has struggled to expand its ranks or deliver compelling longer-term results. Its investment team is experienced but lean given its global purview, and recent recruitment efforts have had mixed results. The firm’s heritage is in financials stocks, where it has done well, but ventures into Chinese stocks and private placements, particularly in the late 2010s and early 2020s, came with big risks and inconsistent rewards. The firm has since dialed back some of those positions, but the damage was done.

The Davis family still controls the firm and keeps a significant portion of its own wealth in Davis strategies. These are good reasons for Chris Davis, who is in his early 60s, to help Davis Advisors evolve in the years ahead.