WFC - Tracking Christopher Davis' Davis Selected Advisers 13F Portfolio - Q3 2023 Update

2023-11-09 23:34:44 ET

Summary

• Davis Selected Advisers' 13F portfolio decreased by 3% to $15.95B this quarter.
• The top three holdings in the portfolio are Meta Platforms, Berkshire Hathaway, and Wells Fargo.
• A new stake was established in MGM Resorts International, while stakes were increased in Viatris Inc., IAC Inc., and Quest Diagnostics.

This article is part of a series that provides an ongoing analysis of the changes made to Davis Selected Advisers' 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 11/9/2023. Please visit our Tracking Christopher Davis' Davis Selected Advisers 13F Portfolio series to get an idea of their investment philosophy and our previous update for the fund's moves during Q2 2023.

This quarter, Davis Selected Advisers' 13F portfolio decreased ~3% from $16.41B to $15.95B. The number of holdings increased from 102 to 104. The top three holdings are at ~26% while the top five holdings are close to ~39% of the 13F assets: Meta Platforms, Berkshire Hathaway, Wells Fargo, Capital One Financial, and Amazon.com.

Note: Davis Selected Advisers manage several mutual funds and ETFs. The flagship mutual fund is Davis New York Venture Fund ( NYVTX ) with ~$6B in assets. Since its 1969 inception, the fund has generated significant alpha: 11.16% annualized over 54 years compared to 10.20% annualized for the S&P 500 index. Also, they advise the Clipper Fund ( CFIMX ) which was incepted in 1984.

New Stakes:

MGM Resorts International ( MGM ) : The 2.27% of the portfolio stake in MGM was established this quarter at prices between ~$36.50 and ~$51. The stock currently trades near the bottom of that range at $38.21.

Stake Increases:

Viatris Inc. ( VTRS ): The ~4% VTRS stake was established in Q1 2021 at prices between ~$14 and ~$19. Next three quarters saw minor increases and that was followed by a ~25% increase in Q1 2022 at prices between ~$10 and ~$15.50. That was followed by a ~15% stake increase last quarter at prices between ~$9 and ~$10.30. The stock currently trades at $9.06. There was a minor ~2% further increase this quarter.

IAC Inc. ( IAC ). and Quest Diagnostics ( DGX ): These two small (less than ~1.3% of the portfolio each) stakes were increased this quarter.

Stake Decreases:

Meta Platforms ( META ): META is currently the largest 13F stake at 9.20% of the portfolio. It was first purchased in 2015 at prices between ~$75 and ~$110. The position has wavered. Recent activity follows. There was a ~15% trimming in Q3 2021 at prices between ~$337 and ~$382 while in Q1 2022 there was a ~25% stake increase at prices between ~$187 and ~$339. That was followed with a stake doubling during H2 2022 at prices between ~$89 and ~$183. The last three quarters saw a ~25% reduction in prices between ~$125 and ~$325. The stock currently trades at ~$321.

Berkshire Hathaway ( BRK.A ) ( BRK.B ): The Berkshire stake is the second largest 13F position at ~9% of the portfolio. It has been in the portfolio since its first 13F filing in Q1 1999. Recent activity follows. The last six quarters saw a ~28% reduction in prices between ~$264 and ~$370. The stock is now at ~$348.

Wells Fargo ( WFC ): WFC is a very long-term stake that has been in the portfolio since its first 13F filing in Q1 1999. At the time, it was already a large stake at ~28M shares. Recent activity follows. Q3 2020 saw a ~45% stake increase at prices between ~$23.50 and ~$26.50. The five quarters through Q1 2023 saw a ~24% trimming. The stock currently trades at $40.40, and the stake is the third largest at ~8% of the portfolio. The last two quarters saw only minor adjustments.

Capital One Financial ( COF ): The top-five 6.76% COF stake was a very small position first purchased in 2014. 2017 saw a substantial ~12M share stake built at prices between ~$78 and ~$100. The 2018-2020 period also saw incremental buying as the stake was increased to ~16.2M shares. The six quarters through Q3 2022 had seen a ~35% reduction in prices between ~$99 and ~$178. The stock currently trades at ~$105. There was a minor ~5% stake increase last quarter and a marginal reduction this quarter.

Amazon.com, Inc. ( AMZN ): The 5.92% of the portfolio position in AMZN was first purchased in 2006. A very large stake was built the next year in prices between ~$2 and ~$5. The position has since been reduced over the years. Recent activity follows. Q3 2021 saw a ~15% selling at prices between ~$160 and ~$187. The three quarters through Q2 2022 had also seen minor trimming. There was a ~47% stake increase during Q4 2022 at prices between ~$82 and ~$121. That was followed by a ~6% further increase in Q1 2023. This quarter saw a ~10% trimming. The stock currently trades at ~$141.

Applied Materials ( AMAT ): AMAT is a 5.91% long-term stake first purchased in 2011. The position remained very small until 2018 when a ~13M shares stake was built at prices between ~$30 and ~$62. Next year saw a ~15% stake increase at prices between ~$34 and ~$62. Since then, the position has seen selling. Q1 2021 saw a one-third reduction at prices between ~$85 and ~$140. The last nine quarters have also seen minor trimming. The stock is now at ~$143.

JPMorgan Chase ( JPM ): A ~43M share stake in JPM was first built in 2004 at an average price in the high 30s. The position size peaked at over 78M shares by 2008. Since then, the stake has wavered. Recent activity follows. The nine quarters through Q1 2023 saw a ~42% selling at prices between ~$113 and ~$172. The stock currently trades at ~$144, and the stake is at 3.76% of the portfolio. The last two quarters saw only minor adjustments.

Alphabet Inc. ( GOOG ): GOOG is a 3.52% of the portfolio position first purchased in 2016 at prices between ~$38 and ~$40. The stake has seen periodic selling since. Recent activity follows. The two years through 2022 saw a ~50% selling at prices between ~$87 and ~$150. That was followed by a similar reduction last quarter at prices between ~$104 and ~$128. The stock currently trades at ~$132. There was marginal trimming this quarter.

Teck Resources ( TECK ): The 3.48% of the portfolio stake in TECK saw a ~30% increase in Q2 2022 at prices between ~$30.50 and ~$45.75. That was followed by a ~17% increase in the next quarter at prices between ~$26 and ~$37. The stock currently trades at $34.45. The last four quarters saw only minor adjustments.

Bank of New York Mellon ( BK ): A huge 110M share stake was built in BK during the 2007-2011 time period at prices between ~$18 and ~$49. The position has since been reduced. The decade through 2020 saw the stake reduced to ~15M shares at prices between ~$21 and ~$58. The stock currently trades at ~$45, and the stake is at 3.48% of the portfolio. The last several quarters saw only minor adjustments.

U.S. Bancorp ( USB ): USB position is a 3.18% of the portfolio stake. A very small position was first purchased in 2010. A substantial ~9.2M stake was built in 2018 at prices between ~$45 and ~$58. Next year saw a ~10% trimming but 2020 saw a stake doubling at prices between ~$31 and ~$59. The stock currently trades at $33.91. The last nine quarters have seen a ~20% trimming.

Owens Corning ( OC ): OC is a 3.15% of the portfolio position primarily built during Q2 2022 at prices between ~$74 and ~$98. Q4 2022 saw a ~7% further increase. That was followed by a ~16% stake increase last quarter at prices between ~$94 and ~$131. There was a ~12% trimming this quarter. The stock is now at ~$122.

Cigna ( CI ): The ~3% of the portfolio CI stake was built in 2020 in prices between ~$142 and ~$220. Next quarter saw a ~50% stake increase at prices between ~$203 and ~$244. That was followed by a ~185% increase in Q3 2021 at prices between ~$218 and ~$246. There was a ~40% stake reduction during Q4 2022 at prices between ~$278 and ~$339. The stock currently trades at ~$289. The last three quarters saw minor trimming.

Texas Instruments ( TXN ): A ~58M share stake in TXN was built in the 2007-08 period in prices between ~$14 and ~$38. The position has since been reduced. Recent activity follows. The nine quarters through Q1 2023 saw a ~21% reduction at prices between ~$149 and ~$201. The stock currently trades at ~$143 and the stake is at 2.71% of the portfolio. The last two quarters saw only minor adjustments.

Markel ( MKL ): The 2.42% MKL position saw a ~20% stake increase during Q4 2022 at prices between ~$1084 and ~$1345. The stock currently trades at ~$1343. The last quarter saw a ~8% stake increase while this quarter there was a marginal reduction.

Intel Corporation ( INTC ): INTC is a ~2% of the portfolio stake built in 2019 at prices between ~$44 and ~$60. Next year saw a ~50% stake increase at prices between ~$44 and ~$69. 2021 had also seen a one-third increase in prices between ~$49 and ~$68. The stock currently trades well below the low end of its purchase price range at $37.80. There was a one-third reduction during H2 2022 at prices between ~$25 and ~$41. That was followed by a ~17% selling this quarter at prices between ~$32 and ~$39. They realized losses.

American Express ( AXP ), Bank of N.T. Butterfield & Son ( NTB ), Coupang, Inc. ( CPNG ), Chubb Ltd. ( CB ), Darling Ingredients ( DAR ), Hollysys Automation ( HOLI ), JD.com ( JD ), Loews Corp ( L ), and Microsoft Corp. ( MSFT ): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.

The spreadsheet below highlights changes to Davis Selected Advisers' 13F holdings in Q3 2023:

For further details see: